Dáil Éireann Debate, Tuesday - 8 October 2024
158. Deputy Colm Burke asked the Minister for Enterprise, Trade and Employment if consideration would be given to the provision of additional financial supports for small businesses in the health and safety sector, given that, while the Strategic Banking Corporation of Ireland loans assist many businesses, the interest rates have increased, leading to a demand for alternative financial supports; and if he will make a statement on the matter. [40077/24]
View answerGovernment is committed to helping businesses by providing a range of targeted interventions and supports.
As well as loans provided through the Strategic Banking Corporation of Ireland, loans are available through Microfinance Ireland. Microfinance Ireland provides vital support to microenterprises by filling the lending gap in the market by lending to business that cannot obtain loans from other commercial lenders. It provides loans of €2,000 up to €50,000 to businesses that do not meet the conventional risk criteria applied by commercial lenders and applies interest rate charges for its lending which are not reflective of its credit risk.
The loan term is typically three years for working capital purposes and can be extended to five years for capital expenditures. Interest rates range from between 5.5% for clients of Local Enterprise Offices and other partners to 6.5% for direct applications. Microfinance Ireland also provides post approval mentoring services to its borrowers through the Local Enterprise Office Network.
Information on these loans and other alternative types of financial supports is available on the National Enterprise Hub (NEH) which I launched in July. This Hub provides business owners with a centralised signposting service for over 180 Government supports. It is a free service that makes it easier for entrepreneurs to access and avail of supports such as grants, funding, loans and expert advice across a range of sectors.
The NEH includes access to a team of expert advisors through a dedicated phone line, live chat and email. These advisors will help to diagnose the needs of the individual business, directing them to the appropriate available supports or indeed put them in direct contact with the relevant agency. www.neh.gov.ie
The Government is dedicated to backing businesses and will continue to work closely with SMEs by supporting their growth.
