Dáil Éireann Debate, Thursday - 25 June 2026
76. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the steps being taken to address the difficulty SMEs are facing accessing credit; and if he will make a statement on the matter. [48196/26]
View answerSMEs are an important part of Ireland’s economy. They account for about 99% of the total enterprise population. They also account for over two thirds of employment. SMEs use credit financing for growth and investment but also to satisfy working capital needs, which can include financing their supply chains. Credit is available from bank and non-bank sources, including credit unions.
My Department publishes the Credit Demand Survey annually. The recently published Credit Demand Survey 2025 found that:
* 82% of SMEs that did not apply for credit as they had sufficient internal funds and therefore did not require external finance.
* 76% of SMEs reported making a profit during 2025, up from 73% in 2024
* Over half of respondents reported increase in turnover last year
The government offers a lot of supports for SMEs. More information on whole of government measures can be found at the national enterprise hub neh.ie.
In terms of agencies under my Department, the SBCI was established in 2014, as Ireland’s national promotional bank. SBCI’s mission is to deliver financial supports that address failures in the Irish credit market while driving competition and innovation and ensuring the efficient use of available EU resources. The SBCI provides funding to borrowers (mainly to Irish SMEs) via “on-lenders”: banks, non-banks and credit unions.
Since its establishment the SBCI has provided about €4.7 billion in lending to more than 65,000 SMEs to end 2025.
The Growth and Sustainability Loan Scheme provides funding to SMEs (including farmers and fishers) to be invested in improving their sustainability or towards long term strategic needs.
Government recently agreed that the SME Growth and Sustainability Loan Scheme would be doubled by another €500 million and extended for 3 years. Work is underway to launch the expanded Growth and Sustainability Loan Scheme to market.
Furthermore, Credit Review Office was established by the Minister for Finance in 2010 to assist viable SME and farm businesses obtain access to bank credit. The Credit Review Service provides an independent appeals process for these businesses whose loan applications (of up to €3m) were refused by banks.
The Credit Review Service received 1,468 formal applications to 31 December 2025. Of these, 1,232 became cases and 1,038 reached final conclusion.
Credit Review upheld appeals in favour of 608 borrowers including those who received a commitment from the bank to reassess the application for a loan if agreed performance hurdles are met by the applicant in the short term.
Finally, Microfinance Ireland, is a not-for-profit lender, established to deliver the Government’s Microenterprise Loan Fund. Microfinance Ireland assists businesses who have difficulty obtaining a business loan from a traditional lender. Microfinance Ireland recently raised its lending limit from €25,000 to €50,000.
In 2025 the Central Bank of Ireland amended lending regulations around house and business lending by Credit Unions The amendments allow the sector to advance a maximum of €6.90 billion in house lending and €3.45 billion in business lending, based on sector total assets of €23.02 billion.
The main changes to the lending limits are summarised below:
Increasing the lending limit for house lending to 30% of total assets,
Increasing the lending limit for business lending to 15% of total assets,
Decoupling of the concentration limits for house lending and business lending,
Removing the various tiers based on asset sizes.
The amendment of these regulations reflects the competence and capability of credit unions to grow their respective loan books in a prudent manner, and to futureproof their offering to support businesses.
