SFA welcomes EU approval of BES and Seed Capital schemes

The Small Firms Association (SFA) has welcomed the decision by the European Commission to allow the arrangements a to have the necessary legislation necessary to give effect to the BES and Seed capital schemes announced in last year's Budget.

According to Pat Delaney, director of the SFA these schemes are vital for many small companies to raise capital, particularly at early or start up stage.

"Before the schemes were introduced there was a traditional lack of such finance in the pre and early start up phases of new enterprises," he said.

"The BES and the SCS have played a major role in helping entrepreneurs overcome this financial gap . Many small companies would find it difficult to raise such funding. In the past they would have had to rely on loan finance which in turn can be difficult for small and start-up companies to obtain."

The Minister for Enterprise, Trade and Employment Mr Micheál Martin also welcomed the European Commission approval.

“These schemes are a vital source of seed capital, which is the life blood of start-up companies. They foster the development and growth of many Small and Medium Enterprises leading to the creation of quality employment opportunities,” the Minister said.