New financial commitments to the small business sector have been announced by the Department of Finance. The measures should help sole traders, small firms and farmers to access the credit and financial services they need.
Finance Minister Brian Lenihan announced on Tuesday that AIB and Bank of Ireland have to make €3 billion each available for new or increased credit facilities, including working capital, this year and next.
Both also have to provide €20m for seed capital to Enterprise Ireland supported ventures and €100m for environment, clean energy and innovation funds.
Both banks have to set out their lending plans within six weeks to credit reviewer John Trethowan, who will also lead the review group. Mr Trethowan said he has arranged to see both AIB and Bank of Ireland next week to hear their initial proposals on how they are going to achieve this plan.
Tracking systems will be devised on amounts over time and says he hopes the banks will not look at the €3 billion figure as a limit, but rather as a target which can be surpassed. 'Good lending is good business,' he said.
Mr Trethowan is also heading up another process, the Credit Review, which will allow businesses who have had credit refused or withdrawn to apply for independent review of the bank's decision.
John Threthowan of the Credit Review group is at www.creditreview.ie
Telephone: 1850 211 789
Email: info@creditreview.ie
