Corcoran Kennedy appeals to banks to make funding available to SMEs

Fine Gael TD for Laois/Offaly and Chair of the Oireachtas Jobs Committee, Marcella Corcoran Kennedy, has today (Friday), urged banks to make funding available to SMEs through the Strategic Banking Corporation of Ireland (SBCI) after the Minister for Finance, Michael Noonan TD and the Minister for Public Expenditure and Reform, Brendan Howlin TD announced the formal release of €800 million in funding.

The SBCI is a state owned banking corporation which will provide tailored loans for SMEs. It is designed to access lower cost funding and pass on these lower costs directly to SMEs; it will increase the number of finance providers to SMEs and create competition.

“Since Ireland’s exit from the EU/IMF Programme the Department of Finance has been working closely with the German Finance Ministry, the German Development Bank KfW, along with European Investment Bank and the NTMA to establish the Strategic Banking Corporation. An initial €800 million in funding has now been secured but it is essential that this money is available to SMEs through the banks.

“I am urging the banks to make this money available to small businesses and start-ups at competitive rates and through innovative products by the end of this year. In recent years it has been extremely difficult for businesses to get credit, the funding is there now and it should be passed on to business owners without delay. I would encourage business owners to apply to their banks for this funding and to investigate further through the Credit Review Scheme if the application is refused.

“Supporting SMEs is a key objective of this Government. Today’s funding, alongside the Credit Review Scheme and the launch of the Microfinance Fund, are testament to the Government’s commitment to this vital sector.

“Through the Credit Review Scheme established by this Government business owners can appeal credit application decision from banks. This scheme has been extremely successful with over 50% of decisions being overturned and far more credit now available as a result.

“The Microfinance Fund offers SMEs unsecured loans from €2,000 up to €25,000 over a period from 3 to 5 years. Businesses in need of a small injection of cash over a short period can now access this fund through their Local Enterprise Office (LEO).

“The legislation which established the SBCI allows for up to €5 billion to be made available to SMEs over the next five years and today’s announcement is the first step. This Government has big plans for the SBCI as it will be a key source of funding to SMEs for years to come but we need the banks to play their part in passing on this funding.”