The Strategic Banking Corporation of Ireland (SBCI) provides low-cost long term loans to credit providers in order to increase lending to SMEs in Ireland. It sources funding from multilateral institutions like the EIB and KfW, as well as domestic sources, totaling €800 million. Rather than lending directly, it works with banks and non-bank lenders to on-lend this funding at a reduced price, driving competition. Initial SBCI loan products launched in 2015 included loans up to €5 million for terms of 2-10 years for working capital and investment by SMEs and farms. It aims to expand support to non-bank lenders providing invoice discounting, vehicle finance

1. Strategic Banking Corporation of Ireland
“Reinforcing Irelands Economic Recovery”
StartUp Gathering Waterford
6th October

2. What is the SBCI?
2
The Strategic
Banking
Corporation of
Ireland (“SBCI”) is
a limited company
Owned by the
Minister of Finance
Governed by an
independent Board
of Directors
Now backed by
EIB, KfW and ISIF
with €800 million of
low cost long term
loans
Set up to source
low cost long term
finance from
multilateral finance
providers and
State resources
Managed by its
own dedicated
team

3. How is the SBCI supporting the recovery?
3
The SBCI
uses an on-
lending
model
This means
it does not
lend
directly to
SMEs
It provides the low
cost long term
liquidity as raw
material to credit
providers, who
then compete to
deliver this to the
SME market
The SBCI works
with banks and
non-bank credit
providers and
charges them all
the same price
for its funding.
This approach
drives
competition as
opposed to
setting out to be
the competition.

4. SBCI on-lending model
4

5. First SBCI products launched in February 2015
5
 Loan’s designed for working capital and investment purposes.
 SME loans can be for terms of up to 10 years , lowering monthly
repayments and positively impacting SME cash flow. Upper loan limit is
€5m. SME working capital loans will be for a minimum 2 year term.
 Agricultural investment loans are designed to support investment in the
productive capacity of the farm enterprise.
 €200 million of funding available to refinance facilities from banks exiting
the Irish market.

6. Delivery of funding – two different approaches
6
AIB
€ 200 million facility
Single price for all SBCI
loans up to € 5 million
Bank of Ireland
€ 200 million facility
Single discount on pricing
across all SBCI loans from
€25,000 up to €5 million

7. SBCI has made good progress to date
7

8. Next steps: SBCI is set to support non-bank
lenders to deliver
Invoice
discounting –
SBCI to boost
capacity of
existing
providers
SME Vehicle
Finance – SBCI
to boost capacity
and enable local
small players to
compete
effectively with
banks and
international
providers with
lower costs of
capital.
SME Asset
Based Financing
– SBCI to enable
the entrance of
one or more
international
platforms to the
Irish market with
a competitive
cost of capital.
SBCI is also
ready to support
entry of new
broad based
SME lending
platforms to the
market.
8

9. Contact: Nick Ashmore
Tel: 01 238 4162
nashmore@sbci.gov.ie
Twitter: @sbcireland

10. Microfinance
Ireland

11. Who are Microfinance
Ireland?
Set up by the government – not for profit
Loans to commercially viable businesses – outside
banks risk criteria
Banks remain the primary supplier of finance to
microenterprises
Co-funded loans with banks are also available

12. Fewer than 10 staff & turnover and/or Bal Sheet < €2m
Estimated to account for over 90% of businesses in
Ireland & EU
May be a Start-Up or an Existing Business
Definition of a
Microenterprise

13. Loan Size
Term
Interest
Rate
Sectors
Loans between €2K - €25k
Maximum term of 5 years
8.8% APR fixed interest rate (discounted by 1%
for LEO referrals)
All industry sectors including retail and
services
Loan Features

14. Security
Flexible
Terms
Borrowers
Purpose of
Loans
Unsecured
Interest-only/phased drawdowns/bullet
repayments
Sole trader/Partnership/Limited Company
Working capital/purchase of
equipment/set-up costs/marketing
Loan Features

15. Microfinance Ireland
Supporting the Governments Action
Plan for Jobs
 1500+ jobs supported
 €10m+ approved to nearly 700
micro-enterprises
 50% approval rate
 60% start-up businesses /40%
existing businesses
Business Activity To Date

16. Supporting Documentation
Start-Up Business Existing Business
1. MFI Application Form
2. Business Plan to
include -
- Cash flow projection (3-
years)
- Summary P&L (3-years)
3. 6-months personal
Bank stmts
* Tax Clearance Certificate
required for drawdown
In addition to 1 – 3:
Recent Management
A/Cs
Latest Certified
Accounts
6-months business Bank
stmts
Aged Debtors/Creditors
List

17. Application forms & info
available from:
www.microfinanceireland.ie
or
www.localenterprise.ie

18. Access to Credit
September 2015

19. Credit Review Office
1850 211 789 info@creditreview.ie
Service to SME /
Farmer
Provides independent review of banks decision to
refuse credit, restructure and refinance
Type of Credit
Facility
Credit Facilities from €1k-€3m – loans,
overdrafts, invoice discounting
Participating Banks AIB, Bank of Ireland, Ulster Bank – & PTSB next
Sectors All sectors - Small and Medium enterprises incl
farmers (>250 employees, >€50m t/o )
Borrowers Sole trader/partnership/limited company
Apply Direct www.creditreview.ie
Locall 1850211789

20. Credit Review Office – Process
1850 211 789 info@creditreview.ie
Application
Rejected?
Internal Bank
Appeal
Credit Review
Office Appeal
• Timescale – 4 to 6 weeks: Has Internal Appeal been done?
Is all necessary information available?
• Application Form and Consent Form – summary, tick boxes
• Nominal Fee - €100-€250
• Bank to provide information used in reaching the credit decision
(business plan, projections etc submitted)
• Output: Opinion, 5-6 pages with Recommendations for Borrower and
Bank, and Agreed Next Actions from Bank
BANK MUST COMPLY OR EXPLAIN

21. 1850 211 789 info@creditreview.ie
Case Assessment
Assessing viability / ability to repay
•What market is the enterprise involved in-growing or declining?
•Promoters Experience/Capability
•Past Performance - historic profit/cash flow
(past 2 years may not be indicative)
•Future Potential - projected profit/cash flow
have steps been taken to improve situation
•Performance against projections so far
•Sales pipeline
•Aged Debtors and Creditors
•Statement of Assets and Liabilities of promoters

22. 1850 211 789 info@creditreview.ie
Credit Review Office Statistics
Cases
Concluded
Bank
Decision
Upheld
Bank
Decision
Disputed
Withdrawn %
Overturned
Credit
Recommended
Jobs
Protected
Total 479 186 235 58 55% €33.5m 2299
Cases
Reviewed
Bank
Decision
Upheld
Bank Decision
Overturned
%
Overturned
Total 1836 1361 475 26%
Credit Review Office Case Statistics mid-Sept 2015
Banks’ Internal Appeals Statistics June 2015

24. SUPPORTING SMES
CAMPAIGN
Problem:
• Supports = high, Awareness = low
• Well over 34 Government websites for business supports
Solution:
• Put all the possible supports in one interactive place
• Make the language business-friendly

25. Online Tool
www.supportingsmes.ie