Michael Lowry (Tipperary, Independent)
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10. To ask the Minister for Enterprise, Trade and Employment the number of businesses and primary farming producers in County Tipperary that have received and have been refused supports under the Covid-19 credit guarantee scheme since September 2020, in tabular form; if his attention has been drawn to the fact that businesses and primary farming producers that have been refused loans through the credit guarantee scheme are now being directed to apply for loans directly from these lending institutions at a higher interest rate; his plans to address these issues being experienced by applicants to the scheme; and if he will make a statement on the matter. [5162/21]

Leo Varadkar (Dublin West, Fine Gael)
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The COVID-19 Credit Guarantee Scheme (CCGS) has €2 billion in lending available for Irish businesses and is the largest guarantee scheme in the history of the State.  Its function is to add certainty to businesses that funding is available for working capital and investment purposes. Loans of up to €1 million are available for up to five and a half years at reduced interest rates.  Loans under €250,000 do not require collateral or personal guarantees. The Scheme is available to SMEs, small Mid-Caps (up to 499 employees) and primary producers and will run until 30 June 2020 in accordance with the European Commission’s State Aid Temporary Framework.

The sectors utilising the scheme most prominently are wholesale/retail (19%), accommodation/food services (13%), agriculture (13%) and construction (10%), demonstrating the strong need and utilisation of the CCGS by businesses most affected by COVID 19.

A total of 2,554 with a value of €141 million have been drawn up to 21 January 2021, the table below provides data on loans drawn in Tipperary up to that date.

While the State provides a guarantee on these loans, the Department plays no role in the application or decision-making process in relation to loans offered under the Scheme, which, is fully delegated to the participating lenders.

Where an applicant has had a loan application refused, they may wish to appeal the decision to the Credit Review Office (CRO).  The CRO helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks. This is a strictly confidential process between the business, the Credit Review and the bank. 

I want to assure the Deputy that I and my officials are constantly reviewing the Scheme and its effectiveness.  In recent weeks a number of new lenders joined the Scheme, including a number of credit unions.

These new lenders will ensure increased regional availability of finance through the CCGS.

I would also direct the Deputy to my Department’s website which has the details of this scheme as well as other relevant loan and grant supports available to Irish businesses.