Overturning of 56% of banks’ decisions is an indication that business owners need to ask questions – Corcoran Kennedy

Fine Gael TD for Laois/Offaly and Chair of the Oireachtas Jobs Committee, Marcella Corcoran Kennedy, has today (Monday) encouraged all owners of small and medium enterprises to ask questions if a bank refuses credit. Deputy Corcoran Kennedy was speaking after it was revealed that the Credit Review Office (CRO) is overturning 56% of the banks’ decision to refuse credit.

“The Credit Review Office is overturning 56% of the banks’ decisions to refuse credit to SMEs, releasing €30m in credit and protecting or creating over 2,000 jobs. However, only 3% of those refused credit from their banks challenge the decisions, the remaining 97% of applicants walk away empty handed.

“While many businesses have taken advantage of the function of the CRO, there are still too many who do not have access to credit and who are unaware of the assistance the CRO can provide.

“SMEs need to challenge the banks’ decisions, as on many occasions the bank themselves reverse their decision and if they do not, the CRO is there.

“This Government has been dedicated to ensuring credit is made available to SMEs. Last year the Minister for Finance, Michael Noonan TD increased in the limit for loan applications that can be reviewed by the CRO from €500,000 to €3m. This increase allowed for requests from a broader range of SMEs and it assisted borrowers banking with non-trading banks.

“ Over €800 million in additional credit has been made available to Irish SMEs through the new Strategic Banking Corporation of Ireland (SBCI) and I would appeal to all SME owners in need of credit to approach their banks to gain access to these funds. If they are refused, they should ask why.

“ Two thirds of all new jobs come from start-ups in their first five years of existence, and the Government is putting in place a range of measures through the Action Plan for Jobs to provide better supports in this area. Local Enterprise Offices (LEOs) across the country provide a range of supports to small business owners and to start-ups. It is extremely important that business owners are aware of the supports available and especially vital that they challenge their bank as to why they have been refused access to credit.”