SFA voices lending concern

THE pending temporary credit guarantee scheme for the country’s SME sector — details of which are due to be finalised next month — can only work with substantial financial support of Government, according to the Small Firms Association (SFA).

At its annual conference in Dublin, yesterday, the association again welcomed the scheme, which was announced earlier this year and is due to run for a trial period of 12 months.

However, SFA chairman Ian Martin warned that it should address flaws in the market such as banks being too risk averse and not understanding innovative business ideas from small firms. The scheme is set to complement — rather than substitute — the existing lending activities of the banks, according to Government, but will be focused on new companies or those trying to develop new products or markets.