IBF Supports Microenterprise Loan Initiative

June 22, 2012

The Irish Banking Federation (IBF) welcomes publication today by Minister Richard Bruton of the Microenterprise Loan Fund Bill and his announcement of the establishment of the scheme to be operational in the autumn.

IBF and member banks have been working with Government and with the Social Finance Foundation (SFF) - tasked with managing and controlling the Loan Fund - in preparing for the implementation and successful delivery of this important initiative.  Further work is required in this regard and we are committed to continuing this in partnership with Government and the SFF.

Banking sector support for this initiative is reflected in the competitively priced loan finance from banks that will be provided to supplement initial Exchequer funding of the Microenterprise Loan Fund; also in the €25 million seed capital and additional funding already provided to enable the establishment in 2007 of the SFF.  The SFF operates as a wholesale supplier of social finance to community-based and micro enterprise projects all over the country and has advanced €28 million to such projects to date.

Notes

The Microenterprise Loan Fund, as announced by Government, will provide loans of up to €25,000 to commercially viable microenterprises that do not meet conventional risk criteria applied by banks. The Fund will be operated by Microfinance Ireland as a subsidiary of Social Finance Foundation (SFF).

The Irish Banking Federation (IBF) is the principal voice of the banking and financial services sector in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.