Responding to today’s publication of the SBCI’s lending figures during its first four months of operation, the Minister for Finance, Michael Noonan stated;
“I am delighted with the progress that the SBCI has made in delivering on the mandate given to it by the Government just last year. During its first four months of operations, the SBCI has made substantial headway in deploying the €800m funds made available to it to fund the real economy. Indeed, I am particularly pleased at the strong take-up of SBCI loans by SMEs in all regions across the country. The SBCI is assisting in underpinning and strengthening the economic recovery underway nationally.”
“The SBCI is also continuing to improve the financing environment for SMEs in Ireland. They are achieving this by encouraging new entrants to the SME finance market as well as enhancing the type of finance available to Irish SMEs. In order for Ireland and its SMEs in all regions to remain competitive, it is important that SMEs in Ireland have access to a range of competitively priced financial products.”
The Government’s aim for the SBCI is to change the range and profile of SME finance providers in Ireland. The SBCI is actively developing relationships with other banks as well as non-bank providers of finance and potential new entrants to the market such as providers of invoice discounting, leasing and asset based finance to strategically broaden the funding options available to the SME sector through the availability of SBCI monies.
“When I was introducing the legislation establishing the SBCI last year, I predicted that people will look back on this in 20 years’ time and see it as a landmark decision that radically changed the way we do business in Ireland. Seeing the progress made by the SBCI and looking at its plans for the future, I am certain that this will be the case.”
ENDS
30th July 2015
Notes to Editors
About the SBCI
The Taoiseach and Chancellor Merkel in late 2013 sought, when Ireland was exiting the EU/IMF Programme, to specifically to find ways to reinforce Ireland’s economic recovery by improving funding mechanisms for the real economy, including access to finance for Irish SMEs. The German Government asked KfW, the German development bank, to work with the German and Irish authorities swiftly, in order to deliver on this initiative at the earliest possible date. The SBCI is a new company and it is currently financed by the German Promotional Bank, KfW, the European Investment Bank (EIB) and the directed portfolio of the Ireland Strategic Investment Fund (ISIF).
The first phase of SBCI measures include new, SME-friendly loan products, which have been available since 9 March through AIB and Bank of Ireland acting as on-lenders of the low-cost funding. Using existing lenders for the first phase has allowed the SBCI to reach the widest range of SMEs as quickly as possible.
Subsequent phases will see the SBCI supporting smaller existing bank and non-bank funding providers and bringing in new participants to the Irish market to act as On-Lenders, enabling them to compete and grow. The SBCI product range will also expand further to include more targeted funding solutions.
The SBCI’s current product offering includes –
- SBCI SME Investment and Working Capital Loan – Key features include a discounted interest rate and loan amounts up to €5 million for periods between 2 and 10 years.
- Facilities to Re-finance Exiting Banks – Loans to refinance those SMEs whose current bank loan facilities originated with banks which are exiting the Irish market. Loans may also cover new lending for investment and working capital purposes.
- SBCI Agriculture Investment Loan – Available to support investment by agriculture SMEs involved in primary agriculture production, the processing of agriculture products or the marketing of agriculture products.
