Fine Gael Senator Michael Comiskey has welcomed the passing of the final stages of the Credit Guarantee Bill 2012 through Seanad Eireann. Senator Comiskey said the passing of the Bill will provide for the introduction of a temporary, three year, partial credit guarantee scheme which will make it easier for small and medium sized enterprises in Sligo and Leitrim to access credit.
“The scheme will provide a 75% State guarantee to banks against losses on qualifying loans to businesses which have insufficient collateral and which operate in sectors with which banks are not familiar.
“I welcome the passing of the Bill through the Seanad as it will provide a much needed practical support measure to small and medium sized enterprises (SMEs) who are currently trying to expand their businesses and create jobs to get our economy moving, but who are struggling to get credit from the banks.
“Initially this Scheme will make €150m of additional lending available per year and is expected to benefit over 1,800 businesses. The Scheme has the potential to net €25 million for the Exchequer arising from increased tax receipts and decreased social welfare receipts as participating businesses establish and expand, benefiting in turn local economies.
“The passing of the Credit Guarantee Bill is a key commitment of the Government under the Action Plan for Jobs 2012 which aims to bring about create the right environment for businesses and entrepreneurs in which to create jobs. This Bill will play an important part in delivering that objective. I look forward to the enactment of the Bill and would urge local businesses and entrepreneurs who are in need of credit and who are eligible for the Scheme, to submit an application once it is up and running.”