€150m is been made available to provide credit to Job-creating SMEs

11th April, 2012

Carlow Fine Gael TD, Pat Deering, has welcomed Minister Richard Bruton’s announcement that €150m is been made available to provide much needed credit to innovative Job-creating SMEs who are currently finding it extremely difficult to get finance from their banks. The state will provide a 75% guarantee to banks against losses on qualifying loans to firms with growth and job creation potential.

 

The loans will be specifically targeted towards businesses that have insufficient collateral of their own and to companies that operate in sectors where banks are not familar. Every €150m of additional lending will benefit approximately 1800 businesses. The money will be loaned in the normal way, similar to any other comparable commercial lending transaction, with the Government providing the lender with 75% guarantee on individual loans to viable businesses. The guaranteed amount will be paid to the lender on the unrecovered outstanding balance on a loan in the event of an SME defaulting on the loan repayments.

 

Deputy Deering was delighted with the announcement and said ‘this is further evidence of this governments commitment to job creation, there is huge potential in our SMEs in Carlow and right across the country to create those few additional jobs and help get some of our many unemployed people back to work’