Niall Collins (Limerick County, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

19. To ask the Minister for Jobs, Enterprise and Innovation her views on the current drawdown levels issued under the credit guarantee scheme; the total value of approvals on the same dates; if she will provide a county breakdown of each drawdown and approval; and if she will make a statement on the matter. [33011/16]

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Since inception in 2012 to 21 October 2016 (the latest available confirmed data from the Strategic Banking Corporation of Ireland, the scheme) 384 SME loans to a total of €61,867,894 have been approved under the 2 existing Credit Guarantee Schemes.

I will send the Deputy separately the breakdown of the value of approvals by county.

SBCI has also advised that approximately €17 million of approvals had been drawn down, but it is not possible to provide a breakdown of drawdowns by county, for data protection and confidentiality reasons.

A loan under a Credit Guarantee Scheme is one with a higher degree of risk, because the SME in question has already tried and failed to get a bank loan before applying under the Scheme. Once a loan is approved, it is important to note that it is entirely a commercial matter for the SME to decide whether or not the loan will actually be drawn down in whole or part.

While the benefit of a guarantee is offered to a borrower under the scheme, some borrowers do not proceed with the guarantee. A significant number of cases are listed as ‘Pending’ by the participating lenders, and the operator only holds partial information on such cases.

The Government is committed to ensuring that our SMEs have access to appropriate finance for their business needs either from banking or non-banking sources, which will ensure that they continue to grow and develop.

The CGS is a central element of those supports which when combined with other Government initiatives such as Microfinance Ireland, the Strategic Banking Corporation of Ireland, the Credit Review Office and the Prompt Payment Code should enable companies to expand, service new markets and grow employment.

CGS 2012 - County split