Small business loans initiative severely limited, claims SFA

The Small Firms Association has warned that a new initiative between Local Enterprise Offices and Microfinance Ireland aimed at providing credit to businesses is severely limited by a requirement that has "neutered" the finance fund to date.

MFI yesterday announced a partnership with 31 Local Enterprise Offices that aims to lend €3.8m to 250 businesses and support 500 jobs by the end of the year.

Micro-enterprises seeking credit from the MFI must first have been refused access to credit by a bank before they can be considered for a loan of between €2,000 and €25,000 from the not-for-profit lender, however.