Govt to partially guarantee loans to firms who cannot get finance

The Government has announced plans to partially guarantee the loans of viable businesses struggling to get money from banks.

The decision was finalised at a special Cabinet meeting on jobs today.

It reiterated the commitment to create an additional 100,000 jobs by 2015.

Jobs Minister Richard Bruton said he was determined the new loan guarantee scheme would help struggling small and medium-sized businesses.

"This will be for companies who have been turned down (for loans) and who are in particular categories (such as innovative firms)," he said.

He added the money would be in addition to the €3bn Finance Minister Michael Noonan has already required the banks to advance to small businesses.