SMEs in Mayo stand to benefit significantly from a new State backed bank that will make it easier and cheaper for businesses to access credit.
Mayo Fine Gael Deputy John O’Mahony said the new fund of €800 million, through the Strategic Banking Corporation of Ireland (SBCI ), which was launched in Dublin on Friday, should help Mayo businesses to expand their operations and increase employment levels.
Business will apply for the loans through their regular bank and will be able to access cheaper interest rates than what is currently on offer, said Deputy O’Mahony.
He said he expects the first loans through the fund to be available to SMEs by the end of the year.
“This is low cost funding for businesses, meaning credit will be available at a better rate than they might currently get from their bank,” said Deputy O’Mahony.
“The first loans should be available to SMEs by the end of this year, so businesses should really start thinking about their applications now.”
Deputy O’Mahony urged business associations such as the SFA, Chambers Ireland and Local Enterprise Offices to help promote the initiative to small businesses in need of capital.
“It is also important that SMEs don’t just give up if they fail to receive the funding they seek from their banks,” he added. “There is always the option of a review with the bank in question, and if this fails, they can approach the Credit Review Office, which is overturning over 50 per cent of refused bank loans.”
Deputy O’Mahony said the SBCI is a long term support for the SME sector, which is crucial for job creation.