Written answers

Wednesday, 30 September 2020

Department of Trade, Enterprise and Employment

Microfinance Loan Fund Scheme

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein)
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28. To ask the Minister for Trade, Enterprise and Employment further to Parliamentary Question No. 49 of 17 September 2020, the number of Microfinance Ireland loans given repayment holidays until October 2020; and the number of these loans that are now falling due in each week in October 2020. [27491/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Microenterprise Loan Fund, operated by Microfinance Ireland assists businesses with fewer than ten employees.  It provides much-needed funding to help microenterprises meet payments for stock, working capital requirements and other overhead expenses through the provision of low-cost lending facilities.

Microfinance Ireland provides vital support to microenterprises by filling the lending gap in the market by lending to business that cannot obtain loans from other commercial lenders.  It lends to business that do not meet the conventional risk criteria applied by commercial lenders and applies interest rate charges for its lending which are not reflective of its credit risk.

There were 2,965 loans drawn under the Fund since its inception with a value of €49.5m.

Microfinance Ireland rescheduled 616 Performing Loans during March and April 2020. These loans were rescheduled to commence payments in October 2020.  Repayments are collected monthly on the 15thof each month.  The terms of the restructure were six months repayment free without any additional interest accruing, and the loan extended by six months.

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein)
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29. To ask the Minister for Trade, Enterprise and Employment further to Parliamentary Question No. 49 of 17 September 2020, the number of businesses with loans through Microfinance Ireland that sought a payment break or extension since the onset of Covid-19; and when the payment breaks and extensions are extended until in tabular form. [27492/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Microenterprise Loan Fund, operated by Microfinance Ireland assists businesses with fewer than ten employees.  It provides much-needed funding to help microenterprises meet payments for stock, working capital requirements and other overhead expenses through the provision of low-cost lending facilities.

Microfinance Ireland provides vital support to microenterprises by filling the lending gap in the market by lending to business that cannot obtain loans from other commercial lenders.  It lends to business that do not meet the conventional risk criteria applied by commercial lenders and applies interest rate charges for its lending which are not reflective of its credit risk.

There were 2,965 loans drawn under the Fund since its inception with a value of €49.5m.

MFI rescheduled 616 Performing Loans during March and April 2020. These loans were rescheduled to commence payments in October 2020.  The terms of the restructure were six months repayment free without any additional interest accruing, and the loan extended by six months.

In addition, a further 97 loan restructures were completed to end June 2020 for Past Due Loans on individual terms, predominantly based on the terms outlined above.

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein)
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30. To ask the Minister for Trade, Enterprise and Employment further to Parliamentary Question No. 49 of 17 September 2020, the breakdown of Microfinance Ireland loans; the number taken out pre-Covid-19 or before March 2020; the value of loans issued pre-Covid-19 or before March 2020; the number on repayment holidays issued on these loans; and the date the repayment holiday extends until in tabular form. [27493/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Microenterprise Loan Fund, operated by Microfinance Ireland assists businesses with fewer than ten employees.  It provides much-needed funding to help microenterprises meet payments for stock, working capital requirements and other overhead expenses through the provision of low-cost lending facilities.

Microfinance Ireland provides vital support to microenterprises by filling the lending gap in the market by lending to business that cannot obtain loans from other commercial lenders.  It lends to business that do not meet the conventional risk criteria applied by commercial lenders and applies interest rate charges for its lending which are not reflective of its credit risk.

A total of 2,221 loans with a value of €30.8m were drawn under the Fund from its inception up until 31 March 2020.

MFI rescheduled 616 Performing Loans during March and April 2020. These loans were rescheduled to commence payments in October 2020.  The terms of the restructure were six months repayment free without any additional interest accruing, and the loan extended by six months.

In addition, a further 97 loan restructures were completed to end June 2020 for Past Due Loans on individual terms, predominantly based on the terms outlined above.

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

31. To ask the Minister for Trade, Enterprise and Employment further to Parliamentary Question No. 49 of 17 September 2020, the breakdown of Microfinance Ireland loans; the number taken out post-Covid-19 or before March 2020; the value of loans issued post-Covid-19 or before March 2020; the number on repayment holidays issued on these loans; and the date the repayment holiday extends until in tabular form. [27494/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Microfinance [MFI] Ireland Loan Fund assists businesses with fewer than ten employees.  It provides much-needed funding to help microenterprises meet payments for stock, working capital requirements and other overhead expenses through the provision of low-cost lending facilities.

The MFI COVID-19 Loan Scheme assists businesses which have been impacted negatively by COVID-19 an includes a six-month repayment free moratorium and the equivalent of one-year interest free (subject to terms and conditions), with rates as low as 4.5% for the remaining period of the loan.

The COVID-19 Loan scheme has seen a very strong uptake in recent months, with €17.3 million in loans drawn by 659 businesses up to 24thSeptember 2020.

A further 85 standard MFI loans with a value of €1.2m were drawn from 1stApril up to 24thSeptember 2020.

All COVID-19 loans are on six-month repayment holidays with repayments commencing in month 7 post drawdown.

Table – Breakdown of the number COVID-19 loans on payment holiday

Month loans drawn Number of COVID-19 loans drawn Month repayments commence
April 2020 95 October 2020
May 2020 156 November 2020
June 2020 213 December 2020
July 2020 99 January 2021
August 2020 55 February 2021
September 2020 41 March 2021
Total 659 -

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