Deering encourages SMEs to avail of new Credit Guarantee Scheme  

7th April, 2017

Fine Gael TD for Carlow Pat Deering, is encouraging Carlow 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.

Deering stated “This is a positive step to helping our local small and medium enterprises. I know that businesses throughout County Carlow have been availing of different refinements of the scheme since they began in 2012.

“I am aware the Government has been working hard on a number of ways to further improve take up by SMEs 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.

Deputy Deering concluded “I strongly encourage all SME’s in Carlow 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 and commerce locally.”