Peter Burke (Longford-Westmeath, Fine Gael)
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321. To ask the Minister for Finance if the Strategic Banking Corporation of Ireland allocates money for renewable projects; and if he will make a statement on the matter. [28556/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Strategic Banking Corporation of Ireland (SBCI) is Ireland’s National Promotional Institution for SMEs and its strategic mission is to deliver effective financial supports to Irish SMEs that address failures in the Irish credit market, while driving competition and innovation and ensuring the efficient use of available EU resources.

The SBCI began lending in March 2015 and it is very encouraging to note the SBCI’s strong lending figures. To the end of March 2017, the SBCI has lent out €657 million to 15,293 SMEs supporting the employment of over 67,000 people. SMEs in all sectors of the Irish economy benefit from SBCI finance, including manufacturing, agriculture, food, retail, healthcare, transport and construction. The majority of SBCI loans are used for investment purposes and SMEs supported by the SBCI are based in all regions of the country, with 85% of them outside Dublin.

The SBCI does not lend directly. Rather, the SBCI provides appropriately priced, flexible funding to SMEs via its partner finance providers, known as on-lenders, through the provision of low cost liquidity and risk sharing activities. The SBCI currently has three bank and five non-bank on-lenders: AIB; Bank of Ireland; Ulster Bank; Merrion Fleet; First Citizen Finance; Finance Ireland; Bibby Financial Services Ireland and FEXCO Asset Finance.  

As SBCI lending is done through on-lenders, loan applicants must comply with the on-lenders credit policies and procedures. Where they meet the credit criteria of the SBCI’s on-lenders, renewable projects may be supported by SBCI funding. However, the SBCI does not specifically allocate money for renewable projects.

The SBCI’s lending to SMEs is largely driven by market demands and needs that are not fully met by the private sector. The Deputy can rest assured that the SBCI is working to develop a more diverse range of on-lenders and innovative products to meet the evolving requirements of the SME finance market and contribute to a sustainable economy.