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Bank of Ireland announces £50m boost for Northern Ireland small business sector
29th April 2008
Northern Ireland’s all-important small businesses received a £50m boost today with the announcement from Bank of Ireland of a three-year lending programme to support their growth.
Northern Ireland’s all-important small businesses received a £50m boost today with the announcement from Bank of Ireland of a three-year lending programme to support their growth.
Launching its ‘Essentials for Business’ package for new and established small firms, the bank said the development of the small businesses sector was fundamental to the creation of a vibrant regional economy.
Michael Kidd, Head of Business Banking at Bank of Ireland Northern Ireland, announced a package of support that would include a loan pool of up to £50m over the next three years, including loans that did not require small businesses to provide security against their borrowings.
He said: “Some 98% of all businesses in Northern Ireland employ fewer than 50 people and research shows that banking support and hands-on advice are vital to their development.
“We have created a small business package that includes free current account banking for two years and unsecured or secured loans plus the support of experts in areas critical to small businesses such as employment law, website development, telecommunications, accounting software and insurance. We believe it is the most comprehensive and competitive package in the market today.”
Mr Kidd said the bank was concerned that global fears about the availability of credit might lead people starting or running small businesses to believe that all banks were tightening their lending in this critical sector.
“From Bank of Ireland’s standpoint nothing could be further from the truth. Our commitment to our small business economy is fully demonstrated by this programme of loans and support, with the clear message that Bank of Ireland is open for business. Indeed, this package with its unsecured lending element is a first for Northern Ireland,” he said.
Mr Kidd said research by the Federation of Small Business indicated that four out of five small businesses regarded a local banking facility as important or very important.
“The research confirms our experience of the Northern Ireland market and we are developing our network to meet the demand for local access, with a total of 45 branches and nine business centres now open across all six counties,” he said.
Mr Kidd added that the outlook for small business growth was very positive, with the FSB research showing that, outside London, Northern Ireland businesses are the most likely in the UK to want to grow rapidly.
He said: “In addition, the Global Entrepreneurship Monitor reports that one in 20 of all adults in Northern Ireland in 2007 was involved in the various stages of setting up their own businesses. Helping new start-ups is a key priority for us and we believe this product offers the best deal for anyone launching their own business with its unique combination of borrowing facilities, clear pricing and professional advisory offers.
“While we all look forward to positive developments from the forthcoming investment conference in Belfast, the reality is that we will depend heavily on indigenous business as our springboard for growth in the economy.”
Bank of Ireland said that the pricing of its small business package was clear and transparent so that small businesses would have complete certainty about what their banking would cost them.
Full details of the Essentials for Business Package and the current schedule of charges and fees for business customers are available by emailing businessbanking@boini.com
© Bank of Ireland 2008
