Fine Gael TD for Limerick, Patrick O’ Donovan has today welcomed the launch of the Credit Guarantee Scheme. The Scheme which will go live next Wednesday 26th November is expected to benefit 5,600 businesses and support the creation of 4,000 jobs over the next three years.
The Credit Guarantee Scheme aims to provide much-needed credit to job-creating SMEs who currently struggle to get finance from the banks. It is intended to address market failure affecting commercially viable businesses in two specific situations – namely, where businesses have insufficient collateral, and where businesses operate in sectors with which the banks are not familiar. It provides a 75% State guarantee to banks against losses on qualifying loans to firms with growth and job creation potential.
“The Small business sector has a huge role to play in the economic recovery of the country. I have seen first-hand in Limerick, access to credit remains a key issue for many of these businesses. If we are to see the growth and jobs there is a need for Government to act to fill gaps where specific market failures exist”.
“Through the Credit Guarantee Scheme and the other measures such as the Microfinance Scheme, we are delivering a number of measures to fill these gaps and ensure that businesses do not face unnecessary obstacles as they attempt to expand and create the jobs we so badly need”.
“The biggest challenge for the government is promoting growth and job creation. The policies that we pursuing like the Credit Guarantee Scheme will benefit innovative, job-creating businesses that face obstacles accessing badly needed credit”.