SMEs encouraged to avail of Credit Guarantee Scheme

Cork based Fine Gael Senator, Tim Lombard, is encouraging local SMEs to avail of the Credit Guarantee Scheme.

Since 2012, Credit Guarantees Schemes have been a key part of the Government’s supports for small and medium enterprises. Over €65 million in bank loans were sanctioned for over 400 SME’s throughout the country, for Working Capital, Purchase of Equipment, Product or Service Development, and Purchase of Premises. These schemes are credited with creating or supporting an estimated 2,500 jobs around Ireland.

I know that businesses throughout Cork have been availing of different incarnations of the scheme since they began in 2012, helping boost our small and medium enterprises as well as increasing job creation within our local communities.

The Government has been working on a number of ways to further improve SME’s uptake of finance from this source. The new Credit Guarantee Scheme makes use of legislative changes in 2016 and have brought forward the following important reforms:

  • Increasing the level of risk the State will take (80% of individual loans), so as to make it more attractive for finance providers to lend to SMEs.

  • Extending the scope to cover other financial product providers too, like people who lease assets and invoice discounters,

  • Extending the definition of loan agreements to include non-credit products such as invoice finance and leasing, and to include overdrafts.

I strongly encourage all SME’s in Cork looking for credit to apply to this scheme. SME’s are the backbone of the Irish economy, critical to our local economies and communities as a source of employment and commerce.”