Minister Mitchell O’Connor welcomes interest rate cut and mentoring assistance for micro-enterprises

The Minister for Jobs, Enterprise and Innovation Mary Mitchell O’Connor T.D., today welcomed the news that Microfinance Ireland, the government funded not-for-profit lender to micro-enterprises, is reducing interest rates by 1% from 1^st July 2016.

Furthermore, Microfinance Ireland has also launched a support program to offer expert mentoring assistance to approved loan applicants as required.  This mentoring will be provided through the Local Enterprises Offices who work hand in hand with Microfinance Ireland to support microbusinesses at local level across the country.

Commenting on the announcement, Minister Mitchell O’Connor said “I welcome this development from the new CEO of Microfinance Ireland Garrett Stokes, that in line with the Government’s Action Plan for Jobs, loans to micro-enterprises will become more affordable.  In addition, I welcome the introduction of valuable business supports to aid small enterprises, increasing their chances of commercial success, thus creating and sustaining jobs and which greatly helps in improving the economy overall”.

Micro-enterprises can apply for loans of between €2,000 and €25,000 through their Local Enterprise Office or directly to Microfinance Ireland.  From 1^st July, applicants seeking loan finance from Microfinance Ireland through their Local Enterprise Office can borrow at 6.8% APR which is a highly competitive interest rate for those small businesses who are currently finding it difficult to access finance from traditional sources.  The standard rate of 7.8% APR will be applicable to businesses who apply directly to Microfinance Ireland and also reflects a reduction of 1% in the standard rate as and from that date.

In addition, approved Microfinance loan applicants can also benefit from mentoring services, organised through the Local Enterprise Offices (Kilkenny 056 7752662) and tailored to the specific requirements of the business.

The Minister of State for Employment and Small Business Pat Breen, also commented, “ I welcome this positive step by Microfinance Ireland to  further support our commitment to the SME sector in all areas of the country and  this news should encourage more entrepreneurs and small businesses to take the first step in starting out or growing their existing business.

Since MFI was set up in late 2012, it has approved €14.1m in loans to 944 businesses supporting 2,148 jobs, across all sectors of business and in every county across the country.

Small business loans are set to become more affordable, thanks to an interest rate cut announced by Microfinance Ireland in Dublin today.

Microfinance Ireland, the government funded not-for-profit lender to micro-enterprises, will reduce its lending rate by 1% for all new lending from July 1^st 2016. Furthermore, Microfinance Ireland in partnership with the Local Enterprise Office Network has also launched a support programme to offer expert mentoring assistance to Microfinance Ireland approved loan applicants as required. This mentoring will be provided through Local Enterprises Offices who work hand in hand with Microfinance Ireland and support micro-enterprises at local level across the country.

Micro-enterprises can apply for loans of between €2,000 and €25,000 through their Local Enterprise Office, or directly to Microfinance Ireland.  From 1^st July, applicants seeking loan finance from Microfinance Ireland through their Local Enterprise Office can borrow at 6.8% APR which is a highly competitive and fixed interest rate for those small businesses which are currently finding it difficult to access finance from traditional sources.  The standard fixed rate of 7.8% APR will be applicable to businesses which apply directly to Microfinance Ireland and also reflects a reduction of 1% in the standard rate as and from that date.

In addition, approved Microfinance loan applicants can also benefit from mentoring services, arranged through the Local Enterprise Offices and tailored to the specific requirements of the business.

Garrett Stokes, the newly-appointed Chief Executive of Microfinance Ireland, said: “The interest rate cut and mentoring support will mean our business loans are now even more affordable. It also means that our clients can receive expert one-to-one mentoring through their Local Enterprise Office, greatly increasing their chances of commercial success and helping to sustain jobs in the longer term. Since Microfinance Ireland was set up in 2012, we have approved €14.1m in loans to 944 businesses supporting 2,148 jobs. We’re happy to support all types of micro- businesses, helping to spread the economic recovery right across the country.”

Paul Reid, on behalf of Local Authorities Economic, Enterprise & Tourism Committee, said: “Local Enterprise Offices as the one-stop-shop for small businesses around the country, are very happy to continue to work in close partnership with Microfinance Ireland, to provide a range of both financial and non-financial supports for micro-businesses.  Both the interest rate cut for new lending and the provision of mentoring for Microfinance Ireland clients are very positive steps in supporting local enterprise, improving economic recovery and developing business growth overall.”

Niall O’Donnellan, Head of Entrepreneurship in Enterprise Ireland, commenting on this announcement said, “I am delighted that mentoring services are now available for Microfinance Ireland clients through Local Enterprise Offices.  This is a valuable support for micro-enterprises ensuring they can reach their potential.”