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THE GOVERNMENT is today announcing details of a €90 million credit fund to help the financing of small businesses, which it hopes will help to fund microenterprises who are turned down for traditional bank funding.
The fund aims to assist 5,500 businesses over the coming decade, hoping to assist entrepreneurs in small firms whose applications for credit from regular banks are dismissed.
The Microenterprise Loan Fund Scheme, which the government hopes will begin lending this autumn, will have an initial budget of €40 million over five years, with provisions for another €55 million of lending over another five-year programme.
The programme will be open to all businesses, including sole traders, who have fewer than 10 staff, and will be managed by Microfinance Ireland which the government says already has considerable experience in the area.
The average value of loans given under the scheme should be around €16,000, with a ceiling of €25,000 placed on any loans.
Jobs minister Richard Bruton, disclosing details of the programme on RTÉ’s Morning Ireland this morning, said small businesses were “the engine of job recovery” and were responsible for about 85 per cent of all job creation.
“We see this as a €90 million fund, over ten years, delivering 5,000 businesses which wouldn’t be established otherwise,” Bruton said.
In a statement this morning, he said the government could “create a strong engine of indigenous business to create and sustain the jobs we need”.
Legislation to establish the fund has been published this morning, with Bruton hoping to have it enacted later this year.
A similar act allowing for a State-backed credit guarantee system for SMEs was approved by the Oireachtas this week and has been sent to President Higgins to be signed into law.
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PR hype..this country is in serious long-term trouble with no way out due to the level of debt and politicans and the media refusing to tell people about radical alternatives that could lead to a way out.This country has a small population with endless green fields,bogs,rivers,lakes,seas,massive oil and gas reserves,beef,dairy…it would be easier to solve this “crisis” if we move away from US/uk style vulture capitalism to a sustainable green based society.I dont think thats going to happen soon because theres too many corrupt business people who dont want to allow it to happen..no profit in a fair society.
“We see this as a €90 million fund, over ten years, delivering 5,000 businesses which wouldn’t be established otherwise,” Bruton said…9 million a year is peanuts and if i was a business owner i would be pretty angry at this PR job.Hundreds of shops are closing each week and there is zero support for them.This is a crime and its addng to the destruction of our culture.
“In a statement this morning, he said the government could “create a strong engine of indigenous business to create and sustain the jobs we need”…says it all really.Why not create a balanced society instead that would create and sustain everything we need,including jobs..
Is there any existing successful economy/society that would be a blueprint for this?
I’m not suggesting that there isn’t, I’m just wondering if what you’re proposing is based on this working somehwere else or if its a more abstract concept that you think should be tried.
Great news!
90 million! When billions are being paid out to unsecured bank bondholders and then we borrow more to replace it!! Shove it…
So you’d rather small businesses got nothing instead of some credit to get running or keep running?
Cop yourself on.
Wolfgang
The only businesses that the present Gov. are really interested are those that contribute to their party funds. While they might show a token gesture to the struggling the unassailable fact is that smaller businesses are getting smaller or disappearing, (because of outrageous rents and overheads etc.) and bigger business and corporations are the ones who are truly benefiting.
This Gov has no real concern for small business as illustrated by budget VAT increases and their election campaign lying about dealing with upward only rent reviews.
If the Gov were serious about helping small business they would work to create an environment where it can recover and not come out with token meaningless gestures that amount to nothing more than window dressing.
Why doesn’t he reduce the costs to business instead such as rates ,esb,red tape etc…….
Oh I forgot, that would actually involve tackling vested interests and these cowards won’t do that!
Excellent point Mel!nhttp://www.irishexaminer.com/ireland/politics/120-jobs-lost-due-to-udaras-red-tape-186826.html
4 years too late for some who would have survived if they had this help. The Horse Has Bolted!
“Microenterprise Loan Fund Scheme”? “Engine of job creation”? If they’d stop wasting they’re time and our money paying advisors to come up with making up neat-sounding catch-phrases, we might get somewhere.
‘their’
Actually think they may as well keep it .dont think that kind of money would do anything for any business.
You want more. Of course you do.
Some people are never happy! If the figure was €900m or €9bn people would still complain.
16 grand each if all 5500 took it up and got it straight up.n16 grand isn’t much.nThis is not news, it’s a joke.
Lot of truth in that.
90 should just be the start, SME’s are in a really bad way in this country. There are so many that are just hanging on.
Obviously not all 5500 are going to take it up, it is going to benefit some SME’s. Can we not just be happy about that. I’m not arguing about the content of people’s arguments, it’s their attitudes. We are taking in approx €10bn less than we are spending every year! This is good news.
Two things are crippling SMEs, rates and inability to get credit. Reducing rates would have a far more positive impact on the success of small businesses than this scheme. But it wouldn’t suit the vested interests, so we end up with an Irish solution to an Irish problem. That’s not moaning. That’s just fact. Ireland, the best country to do little business in the world.
Over 10 years??!!nn
So u borrow 25k (max)to get ur business going. U show projection figures that suit them to get the money .u pay back two and a half thousand a month in an economy that’s not got any money to spend.so how’s that going to work for us.
And what about the small firms that need assistance just to keep their present staff levels employed… To late for them is it ?
It sounds like you’d prefer ‘them’, meaning the Irish public, to just give you the money.
“an economy that’s not got any money to spend” – This is not the case, you haven’t understood the root of the problem. There is plenty of money to spend but people are holding on to it to offset any potential shock. We are in the process of building what’s called a ‘savings glut’ but it’s a kind of catch-22 as in: If sufficient numbers of people start spending our economic activity will rise, jobs will be created etc. and the hope is the hope is that this would become self sustaining e.g. people would have the right balance of savings and spending. However if everyone starts spending in the Irish economy, but not in the Eurozone, or if some other market shock comes along, then those Irish who had been spending would have less savings to rely on and that’s obviously bad.
Heard on the radio that this was the 23rd time this scheme has been announced. Is that true?
More money for business … Ireland’s new welfare class holding the rest of us to ransom.
Your comment resembles exactly what I would expect from the creature in your picture.
I bet the first person to recieve the money will be a relative of the Healy Reas , Lowery, Flynn’s, Quinn’s , and friends of friends. We are such a corrupt country and these politicians are encouraging corruption.
If you think that you can’t make a difference with this scheme, you are right. If you think you can make a difference with this scheme you are right.
I could certainly set up a small business with that so I guess it depends on your outlook. If you are happy enough to look at opportunity and give out, that’s up to you but id prefer to see opportunity as an opportunity, to be honest.
Probably have to be the seventh son of a seventh son born during a month with an ‘r’ in it to qualify. Good news if it works..
Too much government for a country with little need for one.
16k or so a piece, sounds terribly generous (NOT), its a wonder there is still 5,500 small businesses left in this shite economy. I reckon 16k would barely cover the cost of employing a single new employee, another Joke from a farcical government.
Do people really still do that “NOT” thing?
I haven’t read or heard it in a while but then I don’t really keep that much up to date with popular culture.
On your point, is there nothing at all to be said in favour of this scheme? I suppose the extent to which it is taken up will show if its worthwile or not. Why would any business bother applying for a useless loan.
I don’t think its supposed to solve the econcomic crisis but as a standalone scheme I suspect it has some merit.
Behold the Irish business class doing what they do best… putting their hands out for welfare.
Where is that state-dependency in the self-congratulatory script on enterprise and, cough, ‘wealth-creation’?
Turkeysforchristmas.what they feeding u .
Austerity. Tastes shit.
I think you’ll find that the overwhelming majority of Irish businesses have received no “welfare” if you cared to have a little look.
Easier to have shallow, moronic little rant though, isn’t it?
This is the third time this scheme in one form or other has been announced.
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