Written answers
Thursday, 4 July 2019
Department of Finance
Strategic Banking Corporation of Ireland Data
Michael McGrath (Cork South Central, Fianna Fail)
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111. To ask the Minister for Finance the number and value of Strategic Banking Corporation of Ireland loans approved each year since it was established; the number and value of loans issued each year for the same years by sector in the economy in tabular form; and if he will make a statement on the matter. [29025/19]
Paschal Donohoe (Dublin Central, Fine Gael)
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The Strategic Banking Corporation of Ireland (SBCI) is Ireland’s national promotional institution. The purpose of the SBCI is to deliver effective financial supports to Irish SMEs, address gaps and potential failures in the Irish SME finance market, as well as encouraging competition and innovation, and facilitating the efficient and effective use of EU resources and financial instruments. The SBCI achieves this through the provision of low cost liquidity and risk-sharing guarantee activities that support the provision of appropriately priced, flexible funding to Irish SMEs.
Instead of lending directly to SMEs, the SBCI operates through partner finance providers, known as on-lenders. The SBCI has provided funding to a mixture of both banks and non-bank finance providers and currently has 6 on-lenders, 3 bank and 3 non-bank finance providers: AIB, Bank of Ireland, Ulster Bank, Finance Ireland Limited, Bibby Financial Services Ireland, and FEXCO Asset Finance.
The SBCI’s priority is meeting the credit needs of SMEs not currently being fully met by the private sector. Consequently, the SBCI’s lending to SMEs is largely driven by market demands. Figures provided by the SBCI to my Department show that, since the SBCI began its activities in March 2015, to the end of December 2018, the total amount of SBCI supported lending activity, through the provision of liquidity, was €900 million to 21,783 Irish SMEs supporting 141,658 jobs. Under the SBCI’s risk sharing schemes, €152 million has been drawn down by 4,278 SMEs, this has supported 6,572 jobs. The SMEs who have received SBCI finance are from a variety of business sectors with agriculture consistently representing the largest sector.
A breakdown of the SBCI’s supported lending for each year and broken down by sector is provided in the following tables:
2015
Liquidity Scheme: 4,558 loans drawn totalling €205,729,822
| Sector | Number | Value |
|---|---|---|
| Accommodation & Food Service | 6% | 15% |
| Admin & Support Service | 17% | 10% |
| Agriculture | 38% | 23% |
| Construction | 5% | 2% |
| Manufacturing | 5% | 10% |
| Other | 9% | 15% |
| Professional & Scientific | 4% | 4% |
| Transport & Storage | 3% | 3% |
| Wholesale & Retail Trade | 13% | 18% |
2016
Liquidity Scheme: 8,161 loans drawn totalling €367,896,310
| Sector | Number | Value |
|---|---|---|
| Accommodation & Food Service | 6% | 14% |
| Admin & Support Service | 16% | 9% |
| Agriculture | 37% | 22% |
| Construction | 7% | 5% |
| Manufacturing | 5% | 7% |
| Other | 9% | 15% |
| Professional & Scientific | 4% | 5% |
| Transport & Storage | 4% | 5% |
| Wholesale & Retail Trade | 12% | 18% |
2017
Liquidity Scheme: 6,099 loans drawn totalling €215,508,073
| Sector | Number | Value |
|---|---|---|
| Accommodation & Food Service | 5% | 9% |
| Admin & Support Service | 13% | 12% |
| Agriculture | 42% | 28% |
| Construction | 9% | 9% |
| Manufacturing | 4% | 7% |
| Other | 8% | 12% |
| Professional & Scientific | 3% | 3% |
| Transport & Storage | 4% | 5% |
| Wholesale & Retail Trade | 12% | 15% |
Agriculture Cashflow Support Loan Scheme: 4,247 loans drawn totalling €144,945,687
| Sector | Number | Value |
|---|---|---|
| Beef | 47% | 39% |
| Dairy | 38% | 45% |
| Horticulture | 1% | 1% |
| Other | 6% | 5% |
| Pigmeat | 1% | 1% |
| Sheepmeat | 3% | 2% |
| Tillage | 4% | 7% |
2018
Liquidity Scheme: 2,987 loans drawn totalling €110,636,574
| Sector | Number | Value |
|---|---|---|
| Beef | 47% | 39% |
| Dairy | 38% | 45% |
| Horticulture | 1% | 1% |
| Other | 6% | 5% |
| Pigmeat | 1% | 1% |
| Sheepmeat | 3% | 2% |
| Tillage | 4% | 7% |
Brexit Loan Scheme: 60 loans drawn totalling €13,645,025
| Sector | Number |
|---|---|
| Accommodation & Food Service | 2% |
| Agriculture (Non Primary) | 2% |
| Construction Sector | 3%Number |
| ManufacturingAccommodation & Food Service | 30%2% |
| Other | 30% |
| Professional & Scientific | 6% |
| Wholesale & Retail Trade | 27% |
The SBCI continues to work on developing new innovative products, such as the Brexit Loan Scheme, and the Future Growth Loan Scheme. The Deputy may rest assured that the SBCI is working to develop a more diverse range of on-lenders and innovative products. This means it is constantly adapting to meet the evolving requirements of the SME finance market, and contribute to a sustainable, inclusive and competitive economy.
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