New scheme for small business loans

A new Government scheme to help small businesses gain access to finance will be launched later today.

The "LEO Microfinance" loan is available at any of the 31 Local Enterprise Offices and offers loans of between €2,000 and €25,000 at a reduced rate of interest.

It is estimated that the €3.8m in lending will support 500 jobs nationwide.

Michael Johnson, Chief Executive of Microfinance Ireland, said that most sectors would qualify, except for controversial businesses such as pornography, gambling, or cloning research.

"The local shopkeeper, the local tradespeople, all qualify - and by and large, we have something for everybody who's in a business of up to ten employees and with a turnover of under €2m a year."