Seán Fleming (Laois, Fianna Fail)
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158. To ask the Minister for Finance the funding available for loans and credit insurance, respectively, by strategic banking Ireland; the number of applications received since its establishment in respect of each of the categories; the number and value of applications that have been approved; the funding and insurance provided; the timeline for applications to be dealt with; and if he will make a statement on the matter. [50687/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I presume the Deputy is referring to the Strategic Banking Corporation of Ireland, the SBCI. The SBCI is Ireland’s national promotional institution for SMEs. The SBCI does not provide financing directly to SMEs, rather, it uses an on-lending model and works with both banks and non-bank finance providers to make lower-cost finance available to eligible enterprises. The SBCI currently has 3 bank and 3 non-bank on-lenders.

The strategic mission of the SBCI is to deliver effective financial supports to Irish SMEs. The SBCI achieves this through the provision of low cost liquidity and risk-sharing activities, which involve the provision of guarantees. To date, none of the SBCI’s funding has been used to support a specific credit insurance product; rather, as I mentioned, it provides guarantees to and engages in the sharing of risk with its partner finance providers, as well as the State and European partners.

In respect of the figures sought by the Deputy, I am advised that the SBCI does not obtain details of the number of applications for loans made to its on-lending partners and does not receive loan applications directly from SMEs, due to its on-lending model. Instead, the SBCI only obtains information from its on-lending partners in respect of the number of loans to SMEs that have been sanctioned.

At the end of March 2018, the total volume of SBCI supported lending activity through eight on-lending partners, including loans made under the SBCI’s risk-sharing guarantee schemes, was €972 million to over 24,000 SMEs supporting 129,300.

The Agriculture Cashflow Support Loan Scheme and the Brexit Loan Scheme are the SBCI’s two major risk-sharing guarantee Schemes.

Under the Agriculture Cashflow Support Loan Scheme, which has now concluded, a total of approximately €145 million of loans were drawn down by over 4,200 SMES. These loans were made available through AIB, Bank of Ireland and Ulster Bank. SMEs applied directly to those banks for loan approval and these applications were subject to the banks’ normal credit assessment processes.

Up to €300 million of funding to SMEs and small MidCaps is currently available under the Brexit Loan Scheme. There is a two-stage application process for this funding. First, businesses must apply to the SBCI to confirm their eligibility for the Scheme. As part of the process, businesses must submit a business plan, demonstrating the means by which they intend to innovate, change or adapt to meet their Brexit challenges. The SBCI has advised me that it deals with these eligibility applications within 24 hours. Then, loans are subject to the finance providers' own credit policies and procedures. The Scheme is available through the AIB, Bank of Ireland and Ulster Bank.

Since the launch of the Brexit Loan Scheme on 28 March 2018 to 23 November 2018, the SBCI has received 307 applications. Of these, 270 have been deemed eligible to proceed to one of the participating finance providers for a loan under the Scheme. In total, 54 SMEs have progressed to sanction at partner finance provider level to a total value of €12,510,000.

The SBCI also operates the Credit Guarantee Scheme on behalf of the Minister for Business, Enterprise and Innovation. In the last two years, loans of €28.7 million have been supported under the Scheme providing funding to 190 SMEs.

The Central Bank of Ireland’s “Code of Conduct for Business Lending to Small and Medium Enterprises” applies to applications made to the SBCI’s on-lenders that are regulated entities by the Central Bank of Ireland. This Code requires the finance providers to set out their timelines for dealing with loan applications, which vary depending on the size of the loan.