FINE Gael TD for Cork South West Jim Daly, is encouraging Cork SME’s to avail of the new Credit Guarantee Scheme. The scheme was announced by his Fine Gael colleague, the Minister for Employment and Small Business, Pat Breen TD.
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, Purchase of Premises. These schemes are credited with creating or supporting an estimated 2,500 jobs around Ireland.
‘This is a positive step to helping our local small and medium enterprises. I know that businesses throughout County Cork have been availing of different incarnations of the scheme,’ said Mr Daly.
‘The Government has been working hard in a number of ways of further improving take up by SME’s of finance from this source. The new Credit Guarantee Scheme makes use of changes in 2016 legislation to bring forward the following important reforms:
• Increasing the level of risk of 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 West Cork looking for credit to apply to this scheme. SME’s are the backbone of the Irish economy. This is one of a number of measures that has been introduced by Fine Gael, to support our SME’s, which provides vital employment,” Deputy Daly said.
•Further information about the scheme is available on the Department’s website www.djei.ie