Written answers

Thursday, 1 July 2021

Department of Finance

Credit Availability

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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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]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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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:

- AIB

- Bank of Ireland

- Ulster Bank

- KBC Bank

- Close Brothers Commercial Finance

- Permanent TSB

- Finance Ireland Limited

- Capitalflow

- 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

- Invoicefair

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
Oct-15 Finance Ireland €51m
Nov-15 Merrion Fleet €25m*
Nov-15 Allied Irish Bank €200m
Dec-15 Ulster Bank €75m
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
Dec-18 Finance Ireland €75m
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
Jan-20 Capitalflow €50m
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 Capitalflow €31m 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 July 2017 following the sale of Merrion Fleet to Société Générale

**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.

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