Elected representatives across the political divide in Mayo have been clamouring to welcome the microfinance fund of €90 million which was announced last week. According to the politicians the fund is good for business.
Labour councillor Harry Barrett said: “Businesses and sole traders who have been refused credit from the banks will be able to apply for a loan under the microenterprise fund. By providing loans to these businesses, they will be able to expand and create jobs, something not possible previously due the banks’ refusal to lend to them.”
The investment is expected to create 7,700 jobs over the next 10 years, in 5,500 micro-enterprises.
Fine Gael TD Michelle Mulherin has said the fund will be a lifeline for small and growing businesses.
“Many small Irish firms are unable to access credit due to the banks’ risk criteria which also might not be nuanced enough to facilitate the recognition of good but somewhat unconventional business opportunities. The Celtic Tiger years witnessed the over emphasis on property lending by the banks with less focus and a loss in expertise and experience in evaluating business proposals for the purpose of lending. This €90 million fund will help firms overcome these fundamental obstacles and enable them to develop their businesses. Businesses can qualify for loans of up to €25,000,” explained Deputy Mulherin.
According to Dep John O’Mahony the Government recognises the challenges facing small businesses which are desperately struggling to stay afloat. “Access to credit has long been identified as one of the biggest hurdles for micro-enterprises. Through this new scheme we are directly targeting those small businesses and traders who want to grow their business and create jobs, but who are finding that they are being blocked from credit.
“Small businesses are playing a vital role in our economy. They are an outlet of innovation and creativity, as well as being an essential source of employment in local communities. The Government wants to ensure that a wider range of businesses who are refused credit by the banks can access it through alternative sources. The Microfinance Scheme will not only help existing businesses to move forward, it will also help other start-ups to get off the ground.”
The Microfinance Scheme opened for business on Monday, October 1 and is being run by Microfinance Ireland. Further details can be found at http://www.microfinanceireland.ie
