Bernard Durkan (Kildare North, Fine Gael)
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74. To ask the Minister for Finance to outline the extent to which he expects credit availability to small and medium-sized enterprises to improve in line with requirements; and if he will make a statement on the matter. [40893/15]

Michael Noonan (Limerick City, Fine Gael)
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In terms of credit availability to SMEs from the banking sector, I would draw the Deputy's attention to the recently published Department of Finance SME Credit Demand Survey April - September 2015 (). A total of 1,500 telephone interviews were conducted with a random sample of Irish micro, small and medium SMEs. The survey shows that, when pending applications are excluded, 85% of credit applications to banks were approved or partially approved. Both AIB and Bank of Ireland have increased new lending significantly year on year. Bank of Ireland recently announced new credit approvals for Irish businesses to the end of September 2015 of €3.6 billion, up c.13% on the same period last year. Permanent TSB have also recently commenced lending to SMEs. The Credit Review Office (CRO) continues to review loan applications which have been rejected by the banks and is overturning 55% of appeals. I would encourage any SME who has had a credit application declined to avail of the services of the CRO ().

The Strategic Banking Corporation of Ireland's (SBCI) mandate and objectives include the fostering and driving of competition in SME lending through the provision of low cost long term funding to both banks and non-bank providers of credit to SMEs. In doing so, it seeks to facilitate the growth of smaller participants and the entry of new market participants by providing them with the low cost liquidity that will enable them to compete with the larger banks.  SBCI funding is offered on substantially the same terms and the same price to all SME credit providers that are credible, credit worthy, can meet its operational requirements and pass on the benefit of the lower cost funding to their SME clients.  This creates a new forum for competition in the use of SBCI funding between banks and non-banks and enables emerging and newly entering SME credit platforms to grow their businesses. Over 3,200 Irish SMEs benefitted from SBCI loans in the SBCI's first seven months in operation (March to September 2015), borrowing €110 million in total through AIB and Bank of Ireland. More recently, the SBCI has announced its support for two strong emerging non-bank providers of credit to SMEs with a €50 million facility now up and running with Finance Ireland, a provider of leasing and hire purchase financing for vehicles and equipment and a €25 million facility with Merrion Fleet, which provides vehicles and fleet management services to SMEs at a lower cost.  Furthermore the SBCI has a pipeline of new SME credit providers that it intends to bring to the market over the next six months and beyond, which will further enhance competition and support new types of finance in the market.  Further details of the SBCI's current supported products and where they may be accessed are available on its website ().

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, is bringing 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.

With over €2bn of Government supports available to small business in Ireland from over 20 Departments and Agencies, it is vital that SMEs can quickly access information on this range of supports available to them. With this in mind, 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 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.  In this context, the Action Plan for Jobs 2015 includes a dedicated chapter and associated integrated set of actions to support the financing for growth in the SME sector.