SME loan agency to take charge of State scheme
Published 18/10/2016 | 02:30
Management of a State business lending scheme has been taken over by the Strategic Banking Corporation of Ireland (SBCI).
The agency has been named as the new operator of the Credit Guarantee Schemes, previously handled by outsourcing giant Capita.
The Minister for Employment and Small Business, Pat Breen, said yesterday that the scheme was set up under the Credit Guarantee Acts 2012 and 2016. The guarantee scheme allows businesses to borrow relatively cheaply, because the credit risk linked to their loans is shared by their own lender and by the State, so the bank can charge less.
The scheme has resulted in €60m of additional loans being made to 400 small and medium enterprises.