Small enterprises in Galway will have a better chance to gain access to funds following the signing of a new deal between Microfinance Ireland and the European Investment Fund.
Microfinance Ireland, established by the Government as part of the Action Plans for Jobs, is tasked with providing loans of up to €25,000 to small businesses, specifically those in the crucial growth phase. It aims to help more than 5,000 businesses, and assist the creation of 7,700 jobs.
Through this new agreement, the EIF will manage the guarantee under its Progress Microfinance initiative, and allow credit providers in the EU to increase lending.
The deal has been welcomed by Labour’s Galway senator Lorraine Higgins.
“The lack of access to credit remains one of the biggest challenges for small businesses,” she said. “I will continue working with my colleagues in government to ensure we do everything we can to reduce unnecessary red tape and improve access to funds for SMEs.”