Bernard Durkan (Kildare North, Fine Gael)
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68. To ask the Minister for Finance if he remains satisfied regarding the availability of adequate credit facilities to small and medium sized enterprises; and if he will make a statement on the matter. [18044/15]

Michael Noonan (Limerick City, Fine Gael)
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This Government recognises that small businesses play a central role in the sustainable recovery of the Irish economy. To facilitate this, Government policy since 2011 has been focused on ensuring that all viable SMEs have access to an appropriate supply of credit facilities from a diverse range of bank and non-bank sources.

On 19 February 2015, the Strategic Banking Corporation of Ireland launched its initial range of products. The SBCI has already signed up the two largest SME lenders in the country, AIB and Bank of Ireland, to deliver products to SMEs.  Loans have been available from 9 March 2015 at branches of both banks throughout the entire country. SBCI's funding must be passed to SMEs and the SMEs must receive the full benefit of any discounted rate offered to the partner lenders. SBCI has committed €200m to each of the initial bank lending partners and has a further €400m available to other future lenders. Talks are continuing with a number of other potential funding partners from both the banking and non-banking worlds. The SBCI will offer longer term loans, working capital facilities of 2 years' duration, loans to agriculture and loans for the refinancing of credit originally extended by banks who have since exited the Irish market.  Further information is available at

The Supporting SMEs Online Tool, a cross-government initiative, was launched in May 2014. On answering 8 simple questions, the small business will receive a list of available Government supports.  The Supporting SMEs Online Tool is available at .

The Credit Guarantee Scheme encourages additional lending to small businesses by offering a partial Government guarantee to banks against losses on qualifying loans to eligible SMEs.  The Department of Jobs, Enterprise and Innovation and my Department have worked on an amendment to the existing guarantee scheme to provide funding to SMEs whose banks are exiting the Irish market. My colleague, the Minister for Jobs, Enterprise and Innovation, will shortly bring legislation to the Oireachtas which will enable the development of a more flexible Credit Guarantee Scheme with longer duration and more products and providers included.

The Microenterprise Loan Fund, administered by Microfinance Ireland, provides loans of up to €25,000 to small businesses who have been refused credit by commercial banks. Microfinance Ireland works in partnership with the Local Enterprise Offices nationally to administer this fund. This scheme is currently being reviewed by the Department of Jobs, Enterprise and Innovation with a view to making proposed changes to enhance its effectiveness.

The Credit Review Office helps SME or Farm borrowers who have had an application for credit of up to €3 million declined or reduced by either Bank of Ireland or Allied Irish Banks, and who feel that they have a viable business proposition.  They also examine cases where borrowers feel that the terms and conditions of their existing loan, or a new loan offer, are unfairly onerous or have been unreasonably changed to their detriment.  This is a strictly confidential process between the business, the Credit Review Office and the bank. The Credit Reviewer, John Trethowan and his team, have overturned 55% of the refusals that have been appealed to the Office.  Further details are available at .

In seeking to build on the progress to date and to further support the financing of growth within the SME sector our focus in 2015, outlined in the Action Plan for Jobs, will be to implement a series of actions under the following thematic areas:

- Support and influence the effective implementation of major policy initiatives to ensure that the maximum benefits are afforded to SMEs;

- Continue to raise awareness and understanding amongst SMEs and entrepreneurs of the full suite of State business supports that are available;

- Ensure that the Local Enterprise Office network is a key conduit in providing information, support and advice to small businesses on access to finance issues and strengthen the linkages between enterprise capacity building, accessing finance and business guidance;

- Deepen our engagement with international funding institutions;

- Facilitate and support the development of a more diverse range of financing options for SMEs;

- Maintain a strong focus on policy impact, evaluation and learning; and

- Develop measures to ensure prompt payments and promote improvements in the payment culture and practices in Ireland.

The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth.  Consequently the Department of Finance, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit with a view to taking appropriate actions as warranted to ensure that SMEs in Ireland have the opportunity to reach their full potential in terms of growth and employment generation.