SME Credit Guarantee Scheme to get overhaul to get
BUSINESS and Employment Minister Ged Nash has announced changes to the state-backed Credit Guarantee Scheme including extending the length of the guarantee available.
The Credit Guarantee Scheme aims to help viable businesses which have been refused conventional bank credit facilities access a state-backed guarantee for 75pc of their loan.
Around 156 firms have availed of the service so far.
The changes announced include allowing for refinancing loans where an SME's bank is exiting the Irish SME credit market, and extending the maximum length of the guarantee from three to seven years.
Up until now, the Credit Guarantee Scheme was only available to businesses applying for new loans and was not available to companies who wished to move loans from a bank which is exiting the Irish market.
Mr Nash said many small businesses who have survived the recession are under capitalised.
"The problem arises when these SMEs seek refinancing loans ... and are not able to meet the minimum stake requirements of the remaining banks," the minister added.