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| AIB's 500m Euro fund for small firms |
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AIB has said it is providing 500m Euro for an initiative targeted at helping its small business customers.
The bank says the AIB Small Business Recovery Scheme, which will be available from June 1, is part of its commitment to the Government to provide 3 billion Euro in new lending to small businesses this year and next year.
AIB says the scheme is designed to support 'viable' small businesses by restructuring firms' existing loans and providing additional working capital.
Under the scheme, small business customers can restructure existing commitments into a single recovery loan. This loan will be over an agreed term with an interest only option for up to the first two years. The bank says there will be additional working capital provided if required.
AIB says any small business involved must show that it can trade through the current difficulties and recover within what the bank calls 'a reasonable timeframe'.
The director of the Small Firms Association, Avine McNally, welcomed the move, saying it would help viable small businesses to keep trading and sustain jobs.
But Enterprise Minister Batt O'Keeffe has warned AIB that it must live up to its promise to make the 500m Euro available. He said he had received reports of many viable small businesses being 'stonewalled' when they sought credit to keep going or to expand.
Mr O'Keeffe said John Trethowen, the credit reviewer, would be monitoring the supply of credit and adjudicating in a new borrower appeals process.
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