Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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16. To ask the Minister for Enterprise, Trade and Employment if he will report on the work of Microfinance Ireland; and if he will make a statement on the matter. [62046/25]

Alan Dillon (Mayo, Fine Gael)
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I met with Microfinance Ireland (MFI) as recently as yesterday. They play a vital role in supporting microenterprises by addressing gaps in the market for businesses unable to secure loans from commercial lenders. It provides loans from €2,000 up to €50,000 to businesses that do not meet conventional risk criteria, with interest rates that are not reflective of the higher credit risk involved. This is particularly valuable for SMEs lacking a credit history.

Loan terms typically range from three years for working capital to five years for capital expenditure. Interest rates are 5.5% for clients referred by Local Enterprise Offices and 6.5% for direct applications. In addition to finance, MFI provides post-approval mentoring through the Local Enterprise Office network, ensuring borrowers receive practical support to help their businesses succeed.

MFI has demonstrated agility in responding to unexpected challenges. During the pandemic, it rapidly introduced Covid-19 loans to provide liquidity before other State supports were in place. In 2023, at the request of my Department, MFI quickly launched loans for microenterprises affected by flooding and extreme weather events, showing its ability to adapt and deliver targeted support within days.

In August 2024, Minister Burke signed a Statutory Instrument to increase the maximum loan limit from €25,000 to €50,000, in response to rising costs and the evolving needs of SMEs. Since this change, demand for higher-value loans has grown significantly, with a marked increase in applications.

In 2025 almost 80% of loan approvals have been granted to businesses outside of Dublin and since its establishment in 2012 and up to 30 June 2025, MFI has approved 5,849 loans valued at €98.6 million, supporting 11,628 jobs nationwide.

The Microenterprise Loan Fund (Amendment) Bill 2024, currently progressing through the Oireachtas, will secure MFI’s future and strengthen its governance framework. This includes transferring ownership from the Social Finance Foundation to the Minister. I believe that this change will bolster the increasingly strategic role of tailored lending in job creation and enterprise growth.

My Department remains fully committed to the work of Microfinance Ireland. The recent increase in the lending limit and the legislative changes underway will ensure MFI continues to provide vital finance and mentoring to start-ups and small businesses, helping them survive, grow, and create jobs across all regions.