Credit Guarantee Bill will help small businesses in Wicklow to access credit and create jobs – Harris
Posted April 12th, 2012 in Enterprise
Businesses across Wicklow can expect to benefit from the new Credit Guarantee Bill, which will facilitate an extra €150 million annually in lending to SMEs.
Fine Gael Wicklow TD, Simon Harris, has said that the Credit Guarantee Bill 2012, will make it easier for small and medium businesses in Wicklow to access credit and create vital jobs. The Bill has been published by the Minister for Jobs, Enterprise and Innovation, Richard Bruton.
Deputy Harris said, “Access to credit is the single biggest challenge facing small businesses in Wicklow and right across Ireland. The frustration and dismay experienced by business owners in trying to access and retain credit for viable operations is palpable, and I am glad to see the Government taking proactive steps to address this.”
“Small and medium businesses need a reliable stream of credit to function, particularly in the current difficult trading environment. The Credit Review Bill will directly tackle this problem, by providing for the establishment of the Temporary Partial Credit Guarantee Scheme.
“This will support businesses that have insufficient collateral, and those that are operating in sectors with which the banks are not familiar. Under the Scheme the State will provide a 75% guarantee to banks against losses on loans they give to firms with growth potential. Businesses participating in the scheme will be able to build up a positive track record with the lender, which should make it easier to secure traditional loans in the future.
“Initially, the Scheme will facilitate an extra €150 million in lending per year – that will benefit more than 1,800 businesses across the country. This lending will be on top of the lending targets already set down for the two pillar banks.
“There are obvious positive knock on benefits for Wicklow and the wider economy from this Scheme. By supporting viable businesses, the Government is helping to get people off the live register and stimulate local economic activity. It’s estimated that there will be a net gain for the Exchequer of €25 million per €150 million in lending.
“The publication of the Credit Guarantee Bill is a key commitment under quarter one of the Action Plan for Jobs. A range of other measures under the plan will be delivered this year aimed at improving conditions to help businesses to flourish and create jobs.”