Written answers

Tuesday, 24 October 2017

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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68. To ask the Minister for Finance the measures his Department is proposing to help SMEs tackle the challenges they face in view of Brexit in particular providing credit for SMEs; and if he will make a statement on the matter. [44751/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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In my Budget 2018 Speech, as part of the Government’s overall Brexit strategy, I announced that a €300m Brexit Loan Guarantee Scheme is expected to be launched in March of next year. The Scheme has been developed by the Department of Business, Enterprise and Innovation, the Department of Agriculture, Food and the Marine, and Enterprise Ireland and is supported by the Strategic Banking Corporation of Ireland (SBCI), the European Investment Bank Group and the European Commission. The purpose of the Scheme is to assist Irish SMEs and Small Midcap firms with their working capital needs to allow them to adapt and innovate in response to Brexit.

The Scheme is intended to operate under De Minimis state aid rules and will be supported by State and European guarantees. Loans with flexible and competitive terms will be available to businesses with fewer than 499 employees that are exposed to the impact of Brexit. However, primary producers in the agriculture and fishing sectors will be precluded from the Scheme due to state aid rules.

My colleagues, the Tánaiste and Minister for Business, Enterprise and Innovation and the Minister for Agriculture, Food and the Marine, will provide further details of the Scheme shortly.

As well as the Brexit Loan Guarantee Scheme, Irish SMEs will require support generally to diversify and restructure their businesses. There are already significant Government measures in place to support the financing needs of SMEs and these will of course be available to assist SMEs deal with the effects of Brexit. They include the SBCI, the Supporting SMEs Online Tool, the Credit Guarantee Scheme, the Microenterprise Loan Fund, Local Enterprise Offices and the Credit Review Office.

Viable Irish SMEs can access sustainable, flexible and appropriately priced finance through the SBCI. Since March 2015, to the end of July 2017, the SBCI has provided €855m of funding through its 7 on-lending partners to 21,132 Irish SMEs supporting 106,728 jobs. 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, including mitigating the effects of Brexit.

Advisory supports in relation to business planning, such as those provided by the Local Enterprise Offices and Enterprise Ireland, will be particularly important in assisting SMEs that may be adversely affected due to Brexit and will help raise awareness of both private market and State  supports.

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