{"id":28131,"date":"2023-10-08T07:35:48","date_gmt":"2023-10-08T07:35:48","guid":{"rendered":"https:\/\/legalblog.ie\/?p=28131"},"modified":"2023-12-13T23:47:24","modified_gmt":"2023-12-13T23:47:24","slug":"microenterprise-loans","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/microenterprise-loans\/","title":{"rendered":"Microenterprise Loans"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/microenterprise-loans\/#Microenterprise_Loan_Fund\" title=\"Microenterprise Loan Fund\">Microenterprise Loan Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/microenterprise-loans\/#Composition_and_Application\" title=\"Composition and Application\">Composition and Application<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/microenterprise-loans\/#2019_Act\" title=\"2019 Act\">2019 Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/microenterprise-loans\/#2020_Act\" title=\"2020 Act\">2020 Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/microenterprise-loans\/#Increase_Funds\" title=\"Increase Funds\">Increase Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/microenterprise-loans\/#EI_Lending\" title=\"EI Lending\">EI Lending<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Microenterprise_Loan_Fund\"><\/span>Microenterprise Loan Fund<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Microenterprise Loan Fund Act 2012 provides for the establishment of a Microenterprise Loan Fund and provides for the formation of a private company to lend to microenterprise and to manage the Fund. The Fund is designed to stimulate lending to sustainable micro-enterprises and is targeted at start-up, newly established, or growing micro-enterprises across all industry sectors, employing not more than 10 people. The company will be empowered to provide loans of up to \u20ac25,000 for commercially viable proposals that do not meet the conventional risk criteria applied by commercial banks.<\/p>\n<p>The\u00a0 2012 Act empowers the Minister for Jobs, Enterprise and Innovation, to give \u20ac10 million of exchequer money to the company for the purpose of lending to microenterprises; to make a Scheme which may make provision for various terms and conditions such as purposes for which the loan may be given, terms of the loan agreements, reports and information by the subsidiary to the Minister, audit and examination of accounts of the subsidiary, and other matters.<\/p>\n<p>The costs associated with administering the Act will be subject to sanction from the Minister for Finance, with the consent of the Minister for Public Expenditure and Reform, and will be met from moneys provided by the Oireachtas.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Composition_and_Application\"><\/span>Composition and Application<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Microenterprise Loan Fund consists of all grants made to the subsidiary all gift and other income. The Minister may to pay to the subsidiary \u20ac10 million., There is \u00a0scope for additional Exchequer funding if deemed necessary subject to an absolute cap of \u20ac25m before further Oireachtas approval is required.<\/p>\n<p>The subsidiary may invest money from the fund, and to vary or sell investments made. The \u00a0subsidiary to lend money to microenterprises using moneys standing to the credit of the Fund and money borrowed from SFF.<\/p>\n<p>The Act provides for the funding of the subsidiary out of moneys in the Fund, and allows the Minister to make an arrangement related to the expenditure generally incurred by the subsidiary in the performance of its functions under the Act.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2019_Act\"><\/span>2019 Act<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The equity that Microfinance Ireland (MFI) can receive was capped \u00a0\u20ac25 million. A 2019 amendment increased\u00a0 this\u00a0funding by \u20ac10 million (from \u20ac15 million to \u20ac25 million) to a total of \u20ac35\u00a0million. This will provide a further \u20ac10 million to enable MFI to provide\u00a0increased lending in the event of a disorderly Brexit.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2020_Act\"><\/span>2020 Act<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The objective\u00a0 of the Microenterprise Loan Fund (Amendment) Act\u00a0 2020 was is to make certain amendments to both the Microenterprise Loan Fund Act 2012 (as amended) and the European Investment Fund Agreement Act 2018 in order to support the needs of businesses to access additional finance as a result of the Covid-19 crisis.<\/p>\n<p>It increases the overall amount that the Minister can grant to MFI by \u20ac70m, from the current total cap of \u20ac35m to a new cap of \u20ac105m.<\/p>\n<p>MFI may allow lend to microenterprises out of money that it has borrowed from persons (sources) other than from the Social Finance Foundation. It removes the restriction on the subsidiary (Microfinance Ireland &#8211; MFI) from borrowing on its own behalf.\u00a0It gives the power to MFI to borrow moneys from persons other than the Social Finance Foundation, i.e. from promotional financial institutions.<\/p>\n<p>The Minister (with the consent of the Minister for Public Expenditure and Reform) may make an arrangement in writing with MFI in relation to expenditure of moneys by MFI in the performance of its functions under the Act, such as the payment of salaries of MFI staff. A similar restriction is necessary as regards money that MFI will pay to other persons on foot of borrowings made under the new power.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Increase_Funds\"><\/span>Increase Funds<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The 2020 Act\u00a0increased the maximum cumulative contribution that can be committed by the Minister for Business, Enterprise and Innovation or the Minister for Agriculture, Food and the Marine (with the consent of the Minister for Finance and the Minister for Public Enterprise and Reform) to the European Investment Fund from the current limit of \u20ac75 million to \u20ac500 million.<\/p>\n<p>This\u00a0 allows the two Ministers to make use of additional funding available from the European Investment Fund in response to the Covid-19 crisis to increase the size of the Future Growth Loan Scheme and to develop other schemes for Irish enterprises.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"EI_Lending\"><\/span>EI Lending<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Industrial Development (Amendment) Act 2019 afforded lending powers to Enterprise Ireland. It made other provisions related to support for research, development and innovation (RDI) in several critical sectors.<\/p>\n<p>The Industrial Development (Amendment) Act 2019 \u00a0permitted Enterprise Ireland to lend, participate in certain types of follow-on investments. Government approval is required for investment amounts or loans in excess of \u20ac7.5 million for any client. Providing Enterprise Ireland with the powers to facilitate additional lending\/investment instruments in certain circumstances, increases the flexibility to support enterprise development and to manage its investments on a par with private sector investors. Such additional powers will help to\u00a0preserve the value of the State\u2019s investments in these businesses and will assist companies through restructuring or re-development programmes.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-28131\" data-postid=\"28131\" class=\"themify_builder_content themify_builder_content-28131 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Microenterprise Loan Fund The Microenterprise Loan Fund Act 2012 provides for the establishment of a Microenterprise Loan Fund and provides for the formation of a private company to lend to microenterprise and to manage the Fund. The Fund is designed to stimulate lending to sustainable micro-enterprises and is targeted at start-up, newly established, or growing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[270],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/28131"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=28131"}],"version-history":[{"count":14,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/28131\/revisions"}],"predecessor-version":[{"id":30228,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/28131\/revisions\/30228"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=28131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=28131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=28131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}