Matt Shanahan (Waterford, Independent)
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206. To ask the Minister for Enterprise, Trade and Employment the level of SME credit advanced in previous credit guaranteed schemes in the past 12-months, by county and sector; what that quantum of funding is, in relation to the previous year's allocation; the variance estimated in relation to the proposed new credit guaranteed SME scheme to be announced, in tabular form; and if he will make a statement on the matter. [31681/23]

Dara Calleary (Mayo, Fianna Fail)
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The Covid-19 Credit Guarantee Scheme (CCGS) which was launched in September 2020 provided loans to SMEs and small Mid-Caps until 30 June 2022. No further loans were approved after that date. The scheme closed due to the expiry of the State Aid Temporary Framework. The State aid Temporary Framework was adopted on 19 March 2020 to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the coronavirus outbreak. 9,857 loans for a value of €708 million were drawn under the CCGS between its launch in September 2020 and closure of the scheme on 30 June 2022. There was a wide regional spread of loans across the country with 72% of loans by value drawn outside Dublin. This scheme provided vital access to lending facilities for a wide range of sectors. Businesses which were most impacted by the effects of COVID-19 used the Scheme. The wholesale and retail sector accounted for 18% of loans drawn by value, the accommodation and food servicessector accounted for 13.6% of loans drawn, construction accounted for 13% of loans drawn and the primary agriculture and fisheries sector accounted for 12% of loans drawn.

The €1.2 billion Ukraine Credit Guarantee Scheme (UCGS) which was launched on 30 January 2023, with Bank of Ireland, provides low-cost loans for working capital purposes and for medium-term investment, especially in energy saving measures. It forms part of the government’s response to assist businesses effected by the crisis in Ukraine and is available to SMEs, primary producers, and small mid-caps (businesses with fewer than 500 employees). Loans of up to 6 years are available, from €10,000 to €1 million, with no collateral required for loans up to €250,000. The scheme is operated by the Strategic Banking Corporation of Ireland (SBCI) and will be available until 31 December 2024.

AIB joined the scheme on 14 June and a number of credit unions and non-bank lenders are finalising their systems with a view to joining the scheme in the coming months. Loans with a value of €61 million have been approved up to 16 June 2023, of which €49 million have been drawn. SBCI is currently working with lenders with a view to providing loan data by county and sector in the third quarter of 2023.

Schemes operating under the Credit Guarantee Act, which includes the CCGS and UCGS, are based on contingent liability. This means that, other than administration costs, there is no cost to the State unless a participating enterprise is unable to pay back the loan and the finance provider calls on the guarantee for 80% of the outstanding balance.

CCGS and UCGS expenditure for 2021 to June 2023

No claims have been submitted under the UCGS as yet.

The launch of the Growth and Sustainability Loan Scheme (GSLS) in the market in mid 2023 is a key priority action to ensure an adequate supply of credit to SMEs. The GSLS is a new long-term loan guarantee scheme jointly developed by Department of Enterprise, Trade and Employment and the Department of Agriculture Food and the Marine and will be underpinned by resources from the European Investment Bank Group and delivered by the SBCI.