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€1.2bn scheme for start-up firms

THE first steps to provide a €1.2 billion state-backed loans scheme for start-up businesses have been announced by Enterprise Minister Richard Bruton.

The annual €400 million fund is set to be up and running by the autumn, according to his department.

Opening an Irish online social networking business yesterday in Dublin, Mr Bruton said a tender notice had gone out to find the company to design the scheme.

The three-year loans scheme will see a promised €1.2bn lent to start-up and innovative businesses. The loans will be given out by banks but partially guaranteed by the Government.

It is estimated the scheme will cost the State around €12m for every full year, based on administration costs and the underwriting costs of guaranteeing the loans. The online notice to design the scheme, launched recently, calls for companies to propose best international practice in how the partial loans scheme can be run.

Such schemes have operated in Chile, Taiwan as well as other European states, the minister’s spokesman said.

The loans scheme was announced as part of the Government’s recent jobs initiative launch.

Thousands of businesses are expected to benefit from the scheme, which is designed to help firms that do not currently qualify for bank loans because they have insufficient collateral to back up their borrowings.

Mr Bruton has previously said the state-backed loans scheme will create 25,500 jobs, 18,500 directly and 7,000 spin-offs.

After a shortlist of five companies are chosen to help design the scheme over the summer, it is expected to be rolled out in October.

Mr Bruton yesterday opened the expanded offices of SkillPages, a high-growth online social networking company which already has one million members worldwide. The company also has offices in Silicon Valley, California.

Chief executive Iain McDonald said: “What we do is connect people with skills to people who need them. If you have a skill, you can create a skill page that’s free. People can find you through searching on Google or through searching on SkillPages directly.”

Mr Bruton said yesterday following his trade visit to Silicon Valley, where he met over 20 companies, that he expected some of them to bring jobs to Ireland.

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