Bank launches €500m fund to help SMEs

Bank of Scotland (Ireland) has launched a €500m fund aimed at helping small and medium sized companies which are looking to expand their operations in 2008.

Research carried out for the bank found 57% of small and medium enterprises (SMEs) saw growing their business as a priority this year.

On a positive note, 74% of SMEs stated they were positive about their business in the year ahead.

The minimum loan amount is €500,000 and businesses need to have been operating for two years or more. This fund is not targeted at start-ups or property and construction-related lending.

This is the first time Bank of Scotland (Ireland) has designated money specifically for expanding businesses.

John Rohan, divisional director of business banking, said the research was promising and it matched the demand they saw on the ground from progressive, smaller companies looking to expand.

“We have a great track record in lending to business, big and small, in a wide variety of sectors, from retail to leisure and from professional services to manufacturing,” said Mr Rohan.

During the last 18 months, Bank of Scotland (Ireland) opened six new business banking offices in the Republic.

These new offices, in conjunction with the existing five, larger regional offices, have been designed to get closer to the bank’s customers, particularly SMEs.

More offices around the country, and in the North, are planned for the future.

“With our new offices around the country we have built capacity in terms of sourcing and servicing the SME market, but this new fund marks the start of a number of initiatives aimed specifically at businesses in that sector,” added Mr Rohan.

Customers can get more information on the bank’s SME Expansion Fund by calling Elizabeth McMahon on 01-2674528.

Article courtesy of the Evening Echo