Minister Kelleher launches unique support to help small businesses in Cork ride out recession

Banks must loosen credit flow to SMES, says Minister

The Minister for Trade and Commerce, Billy Kelleher, T. D. today (Thursday 29^th October 2009) launched a unique initiative to help small businesses in the Cork and Munster area survive and even grow in the tough times of recession. The Minster also reiterated his call to the banks to provide credit to the small and medium business sector as a matter of urgency.

The Small Business Advice (SBA) Programme is a voluntary response by the local business community to the challenges that recession brings for small business across the country.   The programme, initiated by local TD Simon Coveney and launched by Minister Kelleher, is initially being rolled out in Cork city and county with plans to expand it to other regions throughout 2010.  A team of more than 35 leading business experts from the Cork area have come together to offer confidential advice on the specific problems facing small businesses in recession.

Launching the SBA programme in Cork last night, Minister Kelleher said the initiative was a welcome one which enhanced the existing supports provided by State bodies.

“Recession forces businesses to change in order to survive. That change can be difficult and many businesses can't afford professional advice. Business advisers such as the Small Business Advice Programme can give solid, practical advice on how to prepare for the new market challenges,” he explained.

He urged those involved in the new SBA programme to work closely with other players in the field — in particular the City and County Enterprise Boards in the Cork region who have traditionally provided advisory and mentoring supports to their clients — so as to maximise the overall impact of the programme over the coming 12 months.

The SBA Programme, which is planned to run for the next 12 months, is sponsored by Bord Gais Eireann and Plato Cork, and supported by various business associations including the Cork Chamber of Commerce and the Cork Business Association.  

Minister Kelleher pointed out that the Government had already introduced a number of recent initiatives to support small businesses and improve the availability of credit to the sector.   

“The banks now need to end the credit famine and start releasing working capital finance to the SME sector. Many businesses are continuing to suffer due to a lack of credit lending and any recovery is dependant on getting the banks lending again,” he said.

The Minister said the banks had received government and taxpayer support at a very low rate through the State guarantee and they, in turn, had an obligation to support SME’s in the present economic downturn.

In addition, the Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan T.D. along with the Minister for Finance Mr. Brian Lenihan T.D. had established the Credit Supply Clearing Group to identify appropriate solutions where flows of credit to viable businesses appear to be blocked. 

Last night, Minister Kelleher urged businesses to use the dedicated email link (creditsupplyclearinggroup@entemp.ie ) established by the Tánaiste for submissions from viable businesses that have been refused credit by banks. 

“We want businesses to continue to keep us informed of their experience of dealing with the banks. Submissions to this link have not been significant with eight submissions received up to yesterday,” stated Minister Kelleher.

Businesses who want to apply to the Small Business Advice programme should log on to www.smallbusinessadvice.ie for further information.

ENDS/TC402