Written answers

Tuesday, 26 April 2016

Department of Finance

Strategic Banking Corporation of Ireland Data

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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98. To ask the Minister for Finance if he will provide a breakdown by each sector, regarding the amount of Strategic Banking Corporation of Ireland funding, which has been drawn down using the agriculture investment loan scheme; and if he will make a statement on the matter. [8409/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The Strategic Banking Corporation of Ireland (SBCI) began lending in March 2015. Its goal is to increase the availability of funding to SMEs, at a lower cost and on more flexible terms, than has been available in recent times on the Irish Market. The SBCI channels its funds through lending partners known as on-lenders. The SBCI currently has three bank and two non-bank on-lending partners.

The Agricultural Investment Loan Scheme is a product that is available from the SBCI through its on-lending partners. The Agricultural Investment Loan Scheme is available to agricultural SMEs involved in primary agricultural production, the processing of agricultural products or the marketing of agricultural products. The Agricultural Investment Loan Scheme can only be used for investment purposes. Certain sub-sectors and activities within the agriculture sector are not eligible for funding though this particular product.

The features of this product include: lower interest rates, loan amounts up to €5 million and a minimum loan maturity. Additional features that may be available to qualifying SMEs include: repayment schedule flexibility, loan maturity of up to 10 years and a facility maturity that is tailored to correspond with the investment life cycle of the SME.

Up to December 2015 the SBCI has lent just under €172 million to approximately 4,600 SMEs. €44,008,582 of this funding was lent under the Agricultural Investment Loan Scheme to 1,765 SMEs across Ireland.

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