Plans are in the pipeline to introduce a €3 billion loan fund for Irish small to medium-sized businesses.

The Irish Independent reports that details about the scheme could be revealed in the next couple of weeks, offering a much-needed boost to hundreds of small firms struggling to secure credit.

The Department of Finance is said to be finalising plans for delivering the fund with the Bank of Ireland and Allied Irish Banks, with ministers hammering out the finer points of which industry sectors and geographic regions will be covered by the programme.

A recent survey from the Irish Small and Medium Enterprises Association (ISME) revealed that more than half of firms that applied for funding within the past three months had been turned down by their banks, while 82% of companies claimed their banks were making it “more difficult” for them to access finance.

Source: Irish Independent, 05/07/2010