Bernard Durkan (Kildare North, Fine Gael)
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124. To ask the Minister for Finance 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. [34280/16]

Michael Noonan (Limerick City, Fine Gael)
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Government policy is focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources. In this regard the Government has developed a number of initiatives to ensure that the supply of credit in the market is sufficient to meet the existing and future needs of SMEs.

A key objective of the Strategic Banking Corporation of Ireland (SBCI) is to ensure that SMEs can access low cost flexible loans from a variety of sources. The SBCI channels its funds through lending partners known as on-lenders. The SBCI currently has three bank on-lending partners and four non-bank on-lending partners. The SBCI has a current funding capacity of €1.05 billion which it makes available its on lending partners as demand from SMEs arises. To the end of June 2016 the SBCI has lent €347 million has been lent to over 8,600 SMEs, supporting more than 43,000 jobs across the country.

Another recent initiative is the €150 million agri-loan fund announced by the Department of Agriculture, Food and the Marine. This fund will provide highly flexible, low interest loans to farming SMEs.

The Microenterprise Loan Fund, administered by Microfinance Ireland, is an additional source of credit that provides loans for up to €25,000 to start-up, newly established, or growing micro enterprises employing less than 10 people.

The Credit Review Office (CRO) is another government initiative that helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. This is a strictly confidential process between the business, the Credit Review Office and the bank. The CRO overturns more than 50% of appeals it receives.

The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth. Consequently my Department and the Credit Review Office, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit in order to ensure that there is sufficient access to finance for SMEs.