Joan Burton (Dublin West, Labour)
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65. To ask the Minister for Finance his plans to provide financial support to companies and SMEs that may be adversely effected by Brexit; and if he will make a statement on the matter. [23597/17]

Michael Noonan (Limerick City, Fine Gael)
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Brexit and its aftermath will lead to challenges for SMEs. The exact nature of the impact of Brexit on SMEs is not clear or definitive at present, given the uncertainty surrounding the post Brexit relationship between the UK and the EU.  However, SMEs will require support to diversify their exports to reduce their exposure to the UK, re-price their products and services as well as restructuring their cost bases so they can continue trading with the UK even with sterling at a weaker level. The Deputy may rest assured that it is a key Government strategy to ensure State supports enable the growth of Irish SMEs by facilitating access to credit and promoting investment in SMEs.  Advisory supports in relation to business planning, such as those provided by the Local Enterprise Offices and Enterprise Ireland, will be particularly vital for assisting SMEs that may be adversely affected by Brexit and will help raise awareness of both private market financial supports and existing State supports that are available.

As the Deputy will be aware there are already significant Government measures to support the financing needs of SMEs and these will be available to assist SMEs deal with the effects of Brexit. SMEs can access lower cost, flexible finance from the Strategic Banking Corporation of Ireland (SBCI). To the end of December 2016, the SBCI has lent €544 million to 12,593 SMEs.  The SBCI’s 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 uses an on-lending model; this means it does not lend directly to SMEs. At present, the SBCI has 3 bank and 5 non-bank on-lenders. The SMEs who received SBCI finance are from a variety of business and economic sectors. More than 80% of loans are for investment purposes and the average loan size is €43,200. There is a broad regional spread of the SMEs supported, with 84.8% of them based outside Dublin.  As well as the SBCI, there is the Supporting SMEs Online Tool, the Credit Guarantee Scheme, the Microenterprise Loan Fund, Local Enterprise Offices and the Credit Review Office. 

The Supporting SMEs Online Tool is a cross-government initiative. By answering eight simple questions, SMEs will receive a tailored list of available Government supports to suit their needs. The Supporting SMEs Online Tool is available at www.supportingsmes.ie.   

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. Further information is available on the Department of Jobs, Enterprise and Innovation website. 

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. Microfinance Ireland works in partnership with the Local Enterprise Offices nationally to administer this fund - (www.microfinanceireland.ie).

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 the decision of the bank in more than 50% of the appeals it receives. Further details are available at www.creditreview.ie 

My Department is currently working with the Department of Jobs, Enterprise and Innovation, Enterprise Ireland and the Strategic Banking Corporation of Ireland to examine additional policy measures that may be required to assist SMEs deal with the impact of Brexit.