Brendan Smith (Cavan-Monaghan, Fianna Fail)
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208. To ask the Minister for Jobs, Enterprise and Innovation her plans to improve the conditions attaching to the microfinance scheme; if her attention has been drawn to the fact that small-scale enterprises, including one person businesses, find it difficult to source such finance; if a trades person in cases in which there are demands for such skills, seeking loan facilities for the purchase of necessary equipment is considered as a suitable loan applicant; and if she will make a statement on the matter. [44201/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Microfinance Ireland (MFI) operates the Microfinance Loan Fund Scheme providing unsecured loans of between €2,000 and €25,000 for working capital or investment purposes to start ups and existing businesses from all business sectors with commercially viable proposals that do not meet the conventional risk criteria of banks. A microenterprise is a small business (including a self-employed person) with fewer than 10 employees and an annual turnover of less than €2million.  This would include one-person businesses for the purchase of equipment. Since its establishment to the end of June 2018 MFI has approved 1,770 loans totalling €25.4m that have helped to create or sustain 4,277 jobs so far. 

MFI’s loan offering is unique in that it provides loans at a level of risk beyond that of commercial lenders with affordable interest rates and on an unsecured basis.  All applicants are given a full and fair credit assessment, with decisions based on the viability of the business and the ability to repay the loan.  Where applicants are dissatisfied with a credit decision for loans of €5,000 or above, that decision can be appealed in writing through MFI’s internal credit appeals procedure.

MFI’s own website provides advice and guidance on preparing loan applications. The website can be found at www.microfinanceireland.ie. Applications can be made directly to MFI by email or post. Microfinance Ireland also works with partners to help potential applicants with their applications. Applicants can work with their Local Enterprise Offices (LEOs) or Local Development Companies to assist them in making the application. A 1% reduction in the interest rate is available on applications submitted through the LEOs or Local Development Companies.  can be made to MFI through LEOs or Local Development Companies.

To ensure the provision of ongoing and relevant support to microenterprises preparations are currently underway in my Department for an independent review of the Microenterprise Loan Fund Scheme, which will begin in early 2019.