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The SBCI lends almost €660m to SMEs

Alex Lynn | 07:25 Friday 9th June 2017

The Strategic Banking Corporation of Ireland (SBCI) has now delivered almost €660m to Irish SMEs, following a surge of lending in the last quarter.

The funder has supported over 15,000 SMEs since its launch in October 2014, having provided €113m of drawdowns for 2,700 small businesses during the first quarter of 2017 alone.

This latest growth follows a partnership with three new specialist lenders – Bibby, Fexco and First Citizen – last year, as well as funding agreements with the Council of Europe Development Bank and National Treasury Management Agency.

“The SBCI is delivering on its mandate to drive competition and choice in the Irish SME lending market,” said Nick Ashmore, CEO of SBCI.

“Our strong growth in new lending in 2016, which has continued into 2017, shows the positive impact of the SBCI's lower-cost funding on the Irish SME finance market.

“We appreciate the support shown by our on-lenders in delivering these results for SMEs.”

SBCI was designed to boost SMEs by providing access to flexible products, lower-cost funding and market access for new entrants to the SME lending market.

SMEs using SCBI have now saved 1.15% on average market interest rates due to its partnerships with lower-cost finance providers.

The agricultural sector is SCBI's biggest user, representing 22.9% of its loans.

The majority of loans (84%) were used by SMEs to invest in growing their business, while a further 11% were used for working capital with the remaining 5% for refinancing loans owed to a lender exiting the Irish market.

SBCI aims to partner with more lenders in 2017 and beyond.

“Our annual report today sets out the strategic direction for SBCI for the coming years, noting our role as a conduit for the effective use of EU SME supports relevant to Irish businesses and supporting a variety of types of finance,” Nick added.

SBCI funding is available through both banks and eight non-bank specialist lenders.

Its initial funding partners were the European Investment Bank, German promotional bank Kreditanstalt für Wiederaufbau and the Ireland Strategic Investment Fund.

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