Jennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail)
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511. To ask the Minister for Children, Equality, Disability, Integration and Youth the position regarding funding streams or low-interest credit streams for new crèche start-up businesses, particularly those that are being established in close proximity to new housing developments and which provide an obvious amenity and important local service to an increasing population; and if he will make a statement on the matter. [5953/21]

Roderic O'Gorman (Dublin West, Green Party)
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There are no capital funding schemes available at present from my Department for the construction of new  early learning and childcare services. Existing or prospective early learning and childcare providers can receive expert advice on establishing, or expanding, an early learning and childcare service from the national network of City / County Childcare Committees (CCCs), who can provide detailed information on grants and low cost local enterprise loans and commercial borrowing options that may be available. 

Once a service is registered with Tulsa to operate as an early learning and childcare service, it can enter into funding agreements with my Department to deliver its funding programmes including the National Childcare Scheme and the ECCE pre-school programme.  

Childcare was identified as a strategic priority in the National Development Plan, with capital funding earmarked to develop the early learning and childcare infrastructure over its duration.  This Plan is currently under review. Subject to the outcome of that review, my Department will prepare a plan to deliver on capital investment under the NDP with the aim of ensuring the demand for high-quality early learning and childcare meets supply.

I wish to advise the Deputy that the following information has been received from Department of Enterprise, Trade and Employment in response to this question.

Local Enterprise Office input.

The 31 Local Enterprise Offices nationwide are a ‘first-stop-shop’ for providing advice and guidance, financial assistance and other supports to those wishing to start or grow their own business and act as a ‘signposting’ service for all Government supports available to the SME sector.

The Local Enterprise Offices do not provide direct grant-aid to areas such as retail, personal services, local professional services or construction/local building services, as it may give rise to the displacement of existing businesses.

The Local Enterprise Offices have moved their training programmes, workshops and networking meet-ups online and new entrepreneurs can now enrol for the Start Your Own Business (SYOB) Programme in this manner.  The objective of SYOB is to assist participants in assessing an idea, its viability and then making an informed decision on whether to proceed or take a step back.

The programme is designed to guide participants through the various aspects of business and business planning with no prior business knowledge necessary. It runs over 6-8 modules with varied course structure and schedule. At conclusion participants will have the tools to complete a business plan and an action plan to develop their business idea.

The Local Enterprise Offices also run a Mentor Programme, this is a service offered free of charge, where clients work with an experienced mentor to identify solutions to areas of exposure within their business and develop strategies that are more robust, address issues and maximise potential opportunities, including those around Covid-19 challenges.

In conjunction with the SYOB Programme, a mentor can provide invaluable insights and direction to those starting their business journey and can assist new business owners by planning the steps needed to make their business idea a success.

Microenterprise Loan Fund input

The Microenterprise Loan Fund operated by Microfinance Ireland assists businesses with fewer than ten employees. 

Microfinance Ireland provides loans of up to €25,000 to microenterprises and fills 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.  In particular, its “Start-Up Loan” is aimed at helping businesses to get up and running.

There are no fees or charges on start-up loans from Microfinance Ireland.  Loans are available with fixed repayments which helps in planning financial commitments during the important early stage of the business and are available with interest-only payments for the first 3 months.

Once a Start-Up loan is approved, MFI can also provide invaluable mentoring support from an experienced business mentor on the Local Enterprise Office (LEO) Mentor Panel. Mentoring is a vital extra support tool to help your business, particularly in the early stages. 

The Deputy may wish to contact the Department of Enterprise, Trade and Employment directly for further information.