'Banks won't lend to small firms' under €2bn stimulus credit-guarantee scheme

Chief executive of ISME says the stimulus is not attractive enough for banks to lend to hard-hit firms 

John Moran, Chair of SME Recovery Ireland, says the stimulus package was not big enough. 

The €2bn credit-guarantee scheme is likely doomed to fail because banks won't likely lend to those small firms that are most in need of help, small firm business groups have said.

The credit guarantee scheme which plans to offer €2bn in lower-cost loans to businesses is part of the €7.4bn summer stimulus package that the Government says will save thousands of jobs during the Covid-19 economic emergency.