Welcoming the 8th Report of Credit Review Office (CRO) Minister for Small Business, John Perry T.D., today (Tuesday) said “Owners of small businesses are a central part of the economy and their ability to succeed and grow underpins our future potential for jobs, growth and prosperity.
“Small businesses are not just a vital part of our economy - they play a vital role in our society and local communities as well. That is why, as Minister for Small Business, I intend to continue to ensure that the business environment is supportive of them.
“The Credit Review Office is a vital independent service for SMEs that works towards ensuring that businesses with existing or future potential viability can gain access to credit.
“Small businesses are currently operating in a particularly difficult environment, so it is important that we continue to focus on delivering a practical programme of actions that can achieve positive improvements in the operating environment for small businesses. Part of this programme is the important role that the CRO plays in ensuring viable SMEs have access to credit. The fact that the CRO has overturned 69 bank refusals and supported 683 jobs since its establishment emphasises its significance for the SME sector.
“The issue of access to credit for small businesses is a matter of priority and is explicitly addressed in the Action Plan for Jobs in the context of the Micro-enterprise Loan Fund and the Partial Credit Guarantee Scheme.
“Government has taken a range of actions to recapitalise the banks in order to get them fit for purpose and functioning properly in order to support our enterprise sector. Ensuring the availability of credit to viable SMEs has been central to all the initiatives taken and has included specific SME lending targets for the pillar banks. The recapitalisation process introduced by the Minister for Finance has ensured that there is sufficient capacity available within the pillar banks to meet forecasted SME demand from viable businesses”.
Speaking about John Trethowan’s disappointment that ‘there is not more evidence of support for ‘enterprise risk taking’ on new and increased lending in the banks’ current lending policies’ Minister Perry said, “banks must be prepared to create a more business friendly banking environment and work with their SME clients to help them achieve their goals. Access to finance can mean the difference between survival or failure for many viable new start-ups and existing small businesses.
“The banks must recognise their full responsibilities and develop arrangements which can provide credit for all viable small businesses to actively support the SME sector, a sector that is driving forward recovery in the real economy.
“I am also renewing my call to all businesses to contact the CRO on 1850 211 789 or at info@creditreview.ie if they are experiencing difficulty in obtaining loans or accessing credit.”
ENDS
For further information, please contact:
Sinéad Fennell, Communications Advisor to Minister Perry, 086 6075266