Fine Gael Dun Laoghaire TD, Mary Mitchell O’Connor, has welcomed the announcement of a new microfinance loan product available to small and medium enterprises (SMEs) and has encouraged SMEs in Dun Laoghaire-Rathdown area to avail of it. The Government supported Local Enterprise Office Dún Laoghaire-Rathdown (LEO DLR), in partnership with Microfinance Ireland, will offer loans of between €2,000 and €25,000, at a reduced rate of interest.

It is expected that up to 250 new applications for the loan support will take place this year alone. Based on an average loan size of €15,500, the €3.8 million in lending is expected to support 500 jobs nationwide.

“This is a great option for businesses in Dun Laoghaire-Rathdown, many of whom have encountered difficulty in getting loans from banks. Credit is vital to businesses and I urge local firms to at least familiarise themselves with their Local Enterprise Office and with this particular loan facility. Businesses can apply for these loans directly through the Local Enterprise Office and can also benefit from advice and support during the application stage.

“The reduced interest rate for the new ‘LEO Microfinance’ loan product is 7.5% (7.8% APR), which is 1% lower than the standard loan rate of 8.5% (8.8% APR). The standard loan agreement is between 3 and 5 years, with flexible repayment terms.

“Start-ups and small businesses across all sectors, which employ fewer than ten people, are encouraged to apply if they are finding it difficult to access credit. I believe this will help companies to expand and, in doing so, create jobs. I also think that local businesses in Dún Laoghaire-Rathdown can benefit from the business advice and support available to them through the application stage.”