“As someone who established their own industrial catering business, I am acutely aware of how difficult it is for small and medium enterprises to access credit from the banks. I welcome any measure that helps to deliver a reliable stream of credit for new and existing businesses, especially at a time when indigenous commercial activity is critical to the country’s future economic growth. The provision of credit will help businesses to grow and will lead to job creation opportunities in communities across Ireland,” he commented.
Commenting on the workings of the Bill, which will provide up to €150m of additional lending per annum to SMEs, Senator Mulcahy said: “The Bill provides for the establishment of the Temporary Partial Credit Guarantee Scheme, which will help commercial viable SMEs struggling to get finance. It 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.”
Meanwhile, Senator Mulcahy has encouraged any Clare businesses that are unhappy with a lending decision to seek the advice of the Credit Review Office (CRO).
“I warmly welcome the most recent report of the Credit Review Office (CRO) noting its success in overturning a significant number of lending rejections referred to it. I would encourage businesses to proactively make loan applications and follow the process now in place should these applications be rejected,” he said.
Further details on the Credit Guarantee Bill 2012 are available from www.djei.ie.
Note To Editor:
Senator Tony Mulcahy is available for interview on 086-2436345