Credit Guarantee Bill ‘will help small businesses’

The Credit Guarantee Bill 2012, which has been published by Jobs Minister Richard Bruton, will make it easier for small and medium businesses in Kilkenny and the wider South East to access credit and create jobs, according to Fine Gael TD John Paul Phelan.

The Credit Guarantee Bill 2012, which has been published by Jobs Minister Richard Bruton, will make it easier for small and medium businesses in Kilkenny and the wider South East to access credit and create jobs, according to Fine Gael TD John Paul Phelan.

“Access to credit is the biggest single challenge facing businesses across Kilkenny,” he said. “Every week I meet local business people who express their frustration and dismay at their inability to access credit from the banks. Small and medium businesses need a reliable stream of credit to function, particularly in the current difficult trading environment. The Credit Review Bill will directly tackle this problem.”

He noted that 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,” Deputy Phelan said.

“This will allow for tens of millions of euro to flow into Irish business, which in turn can strengthen and expand their operations and create jobs. Initially, the scheme will facilitate an extra €150 million in lending per year – that will benefit more than 1,800 businesses across the country. This lending will be on top of the lending targets already set down for the two pillar banks.”