Peter Burke (Longford-Westmeath, Fine Gael)
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197. To ask the Minister for Finance if he will request a bank (details supplied) to show discretion on a case; and if he will make a statement on the matter. [45947/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Strategic Banking Corporation of Ireland (SBCI) is Ireland’s National Promotional Institution; however, it is not a bank and does not have a banking license. The strategic mission of the SBCI 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 achieves this aim through the provision of low cost liquidity and risk sharing activities supporting the provision of appropriately priced, flexible funding to SMEs.

The SBCI does not engage in direct lending. It utilises an on-lending model, making finance available through partner finance providers known as on-lenders. The SBCI currently has 7 on-lenders, 3 bank and 4 non-bank. Credit decisions remain with the SBCI’s on-lending partners and credit applications are subject to the individual credit policies and procedures of each on-lending partner.

It is not clear to me from the question under which SBCI Scheme the borrower’s application referred to has been made and considered. However, the finance of pure real estate development activity is not an eligible purpose for use of SBCI support and there are no exceptions to these eligibility criteria. The SBCI is prohibited from financing pure real estate by European rules and regulations . Additionally, as I have already mentioned, all SBCI funding is subject to the credit decision of the on-lender.

The Deputy’s constituent may be interested in seeking assistance from either Microfinance Ireland or the Credit Review Office if he has applied to a bank and his loan has not been approved. In addition, the Deputy may wish to advise his constituent that the Supporting SMEs Online Tool may be of some help.

Microfinance Ireland 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 a government initiative that assists 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. Further details are available at www.creditreview.ie/.

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 Deputy can rest assured that promoting rural employment and development is an important priority for the Government.