Thursday, 1 July 2021
Department of Finance
208. To ask the Minister for Finance the volume of SBCI lending to SMEs through the retail banks for each of the years 2015 to 2020, by financial institution in tabular form; and if he will make a statement on the matter. [35600/21]
The purpose of the SBCI is to deliver effective financial supports to Irish SMEs to 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. SBCI has informed me that it has provided funding to a mixture of both banks and non-bank finance providers and currently has 11 on-lenders, 6 bank and 5 non-bank finance providers:
- Bank of Ireland
- Ulster Bank
- KBC Bank
- Close Brothers Commercial Finance
- Permanent TSB
- Finance Ireland Limited
- SME Finance & Leasing Solution DAC
- Bibby Financial Services Ireland
- FEXCO Asset Finance.
Guarantee Schemes are operated by the SBCI on behalf of the Department of Enterprise, Trade and Employment and Department of Agriculture, Food and the Marine. Under such schemes, loan facilities are made available through finance providers utilising their own funds at interest rates below the market rate: the SBCI is not providing funding.
With regard to the COVID-19 Credit Guarantee Scheme, which it implements on behalf of the Department of Enterprise, Trade and Employment and the Department of Agriculture, Food and the Marine, SBCI facilitates the participation of a range of non-bank lenders in addition to the banks, as follows:
- Metamo Credit Unions
- Credit Union Development Association
- Linked Finance
- Irish League of Credit Unions
Additionally, in 2018, the SBCI had a further non-bank finance provider as an on-lender, First Citizen Agri Finance. This facility was closed in October 2018 following First Citizen Agri Finance raising commercial funding.
The Future Growth Loan Scheme (FGLS), the SBCI COVID-19 Working Capital Scheme (WCS) and the Brexit Loan Scheme (BLS) are all underpinned by counter-guarantees to the SBCI by the European Investment Fund (EIF). The SBCI, along with the EIF is providing the guarantee required to underpin the flexibility and lower the cost of the loans.
The Covid-19 Credit Guarantee Scheme (CCGS) operating under the Credit Guarantee Act 2012 (as amended) is based on contingent liability.
Please see the following table of liquidity funding and guarantees provided by the SBCI to its on-lenders since March 2015, to date.
Chronological Table of SBCI Funds and Guarantees Committed to On-Lenders
|Date||On Lender||Liquidity (Funds)||Risk Sharing (Guarantees Provided)||Name of Scheme|
|Dec-14||Bank of Ireland||€200m|
|Feb-15||Allied Irish Bank||€200m|
|Nov-15||Allied Irish Bank||€200m|
|May-16||First Citizen Agri Finance||€40m**|
|Jun-16||Bibby Financial Services Ireland||€45m|
|Nov-16||Fexco Asset Finance||€70m|
|Jan-17||Bank of Ireland||€65m||Agri Cashflow Loan Scheme|
|Jan-17||Allied Irish Bank||€60m||Agri Cashflow Loan Scheme|
|Jan-17||Ulster Bank||€25m||Agri Cashflow Loan Scheme|
|Mar-18||Bank of Ireland||€128m||Brexit Loan Scheme|
|Mar-18||Allied Irish Bank||€122m||Brexit Loan Scheme|
|Mar-18||Ulster Bank||€50m||Brexit Loan Scheme|
|May-18||Bibby Financial Services Ireland||€25m|
|Jul-18||Multiple Banks***||Launch of Credit Guarantee Scheme 2017|
|Mar-19||Bank of Ireland||€110m||Future Growth Loan Scheme|
|Mar-19||Allied Irish Bank||€90m||Future Growth Loan Scheme|
|Mar-19||Ulster Bank||€50m||Future Growth Loan Scheme|
|Jun-19||Bibby Financial Services Ireland||€70m|
|Sep-19||KBC Bank||€50m||Future Growth Loan Scheme|
|Apr-20||SME Finance and Leasing||€17.5m|
|Jul-20||Bank of Ireland||€180m||Future Growth Loan Scheme - Expansion|
|Jul-20||Allied Irish Bank||€130m||Future Growth Loan Scheme - Expansion|
|Jul-20||Ulster Bank||€80m||Future Growth Loan Scheme - Expansion|
|Jul-20||KBC Bank||€30m||Future Growth Loan Scheme - Expansion|
|Sep-20||Bank of Ireland||€746m||COVID-19 CGS|
|Sep-20||Allied Irish Bank||€752m||COVID-19 CGS|
|Sep-20||Ulster Bank||€317m||COVID-19 CGS|
|Nov-20||Permanent TSB Bank||€50m||Future Growth Loan Scheme - Expansion|
|Jan-21||Metamo Credit Unions||€18.5m||COVID-19 CGS|
|Jan-21||Linked Finance||€10m||COVID-19 CGS|
|Jan-21||Finance Ireland||€20m||COVID-19 CGS|
|Jan-21||Irish League of Credit Unions||€7.2m||COVID-19 CGS|
|Jan-21||Credit Union Development Association||€6.25m||COVID-19 CGS|
|Feb-21||Close Brothers Commercial Finance||€30m||Future Growth Loan Scheme - Expansion|
|Mar-21||Bibby Financial Services Ireland||€12m||COVID-19 CGS|
|Apr-21||Close Brothers Commercial Finance||€20m||COVID-19 CGS|
|Not yet Launched||Invoicefair||€12m||COVID-19 CGS|
**Facility closed in October 2018 following its raising of commercial funding.
*** Launch of the Credit Guarantee Scheme 2017. CGS 2017 does not allocate certain funds.
The SBCI has forwarded updated figures to my Department that show, to the end of December 2020, the total amount of SBCI supported lending activity (through the provision of liquidity) was €1.1 billion to 26,175 Irish SMEs. Under the SBCI’s risk sharing schemes (including both CGS 2017 & COVID-19 CGS), €835 million has been drawn down by 9,651 SMEs.