Dara Calleary (Mayo, Fianna Fail)
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15. To ask the Minister for Finance in respect of the Action Plan for Jobs, the action he is taking to increase the rate of credit lending to businesses via the Strategic Banking Corporation of Ireland; the level of take-up from the fund by businesses to date; and if he will make a statement on the matter. [41760/15]

Michael Noonan (Limerick City, Fine Gael)
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The creation of employment opportunities is a key commitment of this Government. Annual Action Plans for Jobs have been developed since 2012 with the overall goal of sustaining existing jobs and creating one hundred thousand additional jobs by 2016. Small and Medium Enterprises (SMEs) are the lifeblood of the Irish Economy. They make up the vast majority of businesses in Ireland and account for approximately seven in every ten jobs.  Supporting the finance needs of these businesses is therefore a priority for this Government.

The Strategic Banking Corporation of Ireland (SBCI) was incorporated in September 2014 and its goal is to ensure access to flexible and lower cost funding for Irish SMEs.  The SBCI launched its first product programme in February 2015 and lending to SMEs commenced in early March 2015 through its initial 'on lending' partners AIB and Bank of Ireland.

Up to 30 September 2015, some €110 million in SME loans were approved and drawn down by c.3200 SMEs.  The loans have been taken up by Irish SMEs for a variety of purposes and across a range of sectors in the economy.  More than 90% of loans were for investment purposes and the average loan size is approximately €35,000. There is a wide geographical spread and the vast majority of loans are to regionally based SMEs outside Dublin.

To further meet the financing needs of SMEs in Q4 2015 the SBCI announced on-lending agreements with two non-bank lenders, Finance Ireland and Merrion Fleet.  This is a key step in creating greater competition for SME lending in the Irish market, by supporting smaller indigenous providers of finance and providing funding for a broader range of products, including Asset Finance, Leasing and Contract Hire. Furthermore, the SBCI announced in December 2015 an additional €200m facility with AIB to continue to lend to Irish businesses seeking lower cost working capital, business investment, agriculture and refinancing loans.

The SBCI is in advanced discussions with a number of other bank and non-bank lenders, and it is anticipated that further announcements of new on-lending agreements will be made in the coming weeks and months. 

I am pleased to note that of the SBCI's initial funding capacity of €800 million, €676 million has now been committed to its 'on lending' partners to support the financing needs of SMEs.

The SBCI is committed to leveraging existing and new relationships with on-lending partners to support SME growth and investment through the provision of lower cost and longer term funding.   The SBCI has made significant progress over 2015, both in terms of providing funding to SMEs, and in relation to building a strong infrastructure through which it will continue to provide long term support to SMEs. 

Finally, the Deputy may be interested to note that the SBCI is currently preparing a detailed analysis of its lending activity for 2015 and that this will be published during quarter one of 2016.