Microfinance Ireland will be able to make a further €30m in funding available to small firms over the next five years, following a new agreement with the European Investment Fund.

2017 was a record year for the non-profit lending agency, as pplication volumes rose 10%. A record 400 loans totalling €5.5m were approved, aiding the creation of an estimated 1,100 jobs. According to MFI, its loans have supported 3,950 new jobs in 1,567 businesses since 2012.

Microfinance Ireland chief executive Garrett Stokes said: “Microfinance Ireland is delighted that 400 loans were approved to businesses in 2017, which were either setting up or trying to expand. None of these businesses were able to get the finance they needed from either banks or other lending institutions to support their business ideas.

“We are also very grateful to EIF for providing us with this new guarantee. This enables us to continue to support financially vulnerable micro-enterprises that cannot borrow through traditional lending channels. Through these future loans, MFI will support the creation and sustainment of more than 4,000 jobs in the next five years.”

EIF deputy chief executive Roger Havenith commented: “We are delighted to have signed a new Employment and Social Innovation guarantee agreement with MFI which is crucial for the continuation of EIF support to Irish micro-entrepreneurs looking to start and grow small businesses.”

In Association with

Microfinance Ireland chairman Cyril Forbes said that the €2,500 per loan administration cost was the cheapest rate per job of any government job initiative,.

Photo: MFI funded Kyna Brady, a Millner & Bridal Headwear specialist