3,290 jobs created or maintained in the lifetime of the Credit Guarantee Scheme
12th April, 2018
Minister of State at the Department of Business, Enterprise and Innovation, Mr. Pat Breen, T.D., today welcomed the latest Quarterly Report (Q4 of 2017) from the Strategic Banking Corporation of Ireland (SBCI) on its operation, on behalf of the State, of the Credit Guarantee Scheme (CGS) for SMEs.
The latest Report shows that in Q4 of 2017, CGS Facilities were sanctioned for 28 Irish SMEs, for a total of over €4.9 million in funding that will create or maintain 125 Irish jobs.
Since the Credit Guarantee Scheme became operational in October 2012, 530 facilities totaling €84.4 million have been sanctioned. These sanctions are supporting or maintaining 3,290 jobs.
Commenting on the publication of the latest Quarterly Report today, Minister Breen said:
“I am pleased to see that the Credit Guarantee Scheme continues to support Irish SMEs in every region, and across 16 sectors of the economy. Over €84m in sanctioned facilities are now supporting 3,290 jobs. I would encourage SME operators seeking finance to examine whether the Credit Guarantee Scheme is the right option for them to grow their business.”
The Credit Guarantee Scheme is provided by the Government through the Minister for Business, Enterprise and Innovation to facilitate lending to viable Micro, Small and Medium-sized Enterprises (SMEs) which would otherwise be declined by lenders due to insufficient collateral for the additional facilities and/or growth/expansionary SMEs which due to their sectors, markets or business model are perceived as a higher risk under current credit risk evaluation practices. The Scheme can be used to facilitate refinance if related to circumstances where the SME’s bank is either unwilling to extend or (ii) unable to provide the credit sought or has sold SMEs debt to a 3rd party.
The Scheme enables the borrower to access finance which would not otherwise have been available. The borrower contributes to the cost of the Scheme by paying a premium of up to 2% on the outstanding annual balance of the Scheme Facility to the Minister for Business, Enterprise and Innovation.