Billionaire Feeney is backing interest-free loans to firms
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A TRUST fund backed by billionaire Chuck Feeney's Atlantic Philanthropies is to offer interest-free loans to people in south Dublin who have been turned down by the banks for funding for a business.
The Dun Laoghaire-Rathdown Trust Fund will charge a small administration fee -- but no interest.
It is understood to be the first loan scheme of its kind in the country, and the model is now likely to be replicated nationwide.
Mr Feeney is an Irish-American businessman and philanthropist who made his fortune as a co-founder of the Duty Free Shoppers Group.
€1bn donated
He has donated around €1bn to projects in Ireland, mainly in third-level colleges.
He founded Atlantic Philanthropies in 1982 and has since transferred the bulk of his wealth to the foundation, after making modest provisions for himself and his family.
Now his foundation is backing the new trust fund, which has been set up to help people facing barriers to setting up a business in the Dun Laoghaire-Rathdown area.
A spokesman for the fund said applications from unemployed people, foreign nationals, those from a disadvantaged background or people with disabilities would be welcomed.
Those who have a well-researched business idea for new or existing enterprises in the south Dublin area would be in line for funding.
Interest-free loans of between €500 and €5,000, repayable over a one- to three-year period, are on offer.
The loans can be used towards any legitimate business expense, including working capital.
The fund has already secured €50,000 in funding for the microfinance scheme through grant-aid and small investments and it hopes to raise €500,000 through corporate donations and fundraising activities over the next five years.
The initiative for the fund came from the Dun Laoghaire-Rathdown County Enterprise Board and the Southside Partnership, which is a charitable body set up to help those from disadvantaged backgrounds.
Enterprise boards are restricted in who they can lend to. The two groups approached Atlantic Philanthropies for funding.
Finance
The chairman of the fund, Michael O'Connor of Siemens, said: "Banks and government agencies simply aren't in a position to help every business get off the ground, but the Dun Laoghaire Rathdown Trust Fund was set up specifically to help those people who have had difficulty in getting start-up and expansion finance."
Microfinance is in its infancy in this country. Leading charity fundraiser Norma Smurfit set up First-Step Microfinance in 1991.
It provides loans of up to €25,000 to fund entrepreneurs to start up or expand a new business. But other microfinance initiatives are few.
Application forms for the new microfinance scheme are available from the Dun Laoghaire-Rathdown Trust Fund at (01) 4948400 or by e-mail to info@dlrceb.ie
- Charlie Weston Personal Finance Editor
Irish Independent
