AIB launches job creation loan for SMEs

AIB has introduced a job creation loan for small and medium businesses.

During a pilot scheme, which ran during the second half of 2011, AIB received 962 applications from firms seeking total funds of €36.5m.

At the end of December 2011, total loans of €16m for 480 applications had been sanctioned.

A further €16.2m or 391 applications are in progress.

To qualify for finance under the loan, customers need to invest in a new project or initiative which results in the creation of at least one permanent full-time job, while meeting normal lending criteria and guidelines.

John Webb, Head Of Business Banking, AIB said: "Small and medium size businesses are hugely important to AIB, representing more than nine out of 10 of our business customers. By virtue of their size, these businesses tend to be flexible and responsive to a change in market conditions and are often to the forefront in leading the creation of new job opportunities and supporting economic recovery at local and national level."

Ian Talbot, Chief Executive of Chambers Ireland said: "We at Chambers Ireland welcome the launch of AIB’s Job Creation Loan. It’s good news coming after the European Commission’s announcement about freeing up structural funds to support SMEs across Europe.

"This AIB initiative is another positive development that will help underpin stabilisation and rebalancing in the Irish economy."