Credit Guarantee Scheme will support existing and future enterprise

Senator Deirdre Clune is welcoming the roll out of the €450million Credit Guarantee Scheme which was launched today by An Taoiseach, the Tánaiste and the Minister for Jobs, Enterprise and Innovation. The Credit Guarantee Scheme will go live next Wednesday 24^th October, and is expected to provide an additional €150million in lending for small businesses per year over the next three years.

“This scheme is expected to benefit 5,600 businesses and generate 4,000 jobs over three years. Job creation is a welcome development but crucially it aims to benefit over 5,000 indigenous, already existing companies.

“I hope that businesses in Cork will benefit from the Credit Guarantee Scheme which aims to provide credit to viable SMEs who currently struggle to obtain the necessary finance from the banks. It provides a 75% State guarantee to banks against losses on qualifying loans to firms with growth and job creation potential.

“I am delighted to add that all actions in the Action Plan for Jobs scheduled for delivery in the first and second quarter of 2012 have been successfully delivered and 58 out of 67 measures scheduled for the third quarter have been implemented.

“There are many other options for business support available, including the €90million Microfinance Scheme, the €120million second call under Innovation Fund Ireland and the €150million Development Capital Scheme.

“The Credit Guarantee Scheme will be a welcome leg-up for innovative and growing businesses who have difficulty accessing credit because they do not have enough collateral, or because they operate in sectors which the banks are not familiar with.

“Growing industries like the ICT sector need to be supported in their infancy as they offer sustainable enterprise and job creation.

“We need to stimulate our jobs recovery to get the economy back on track and with the help of new support like the Credit Guarantee Scheme Irish businesses will be given the opportunity to flourish”