Microenterprise Loan Fund (Amendment) Act 2020

• Cited as: IR No. 3/2020
• Jurisdiction: Ireland

Microenterprise Loan Fund (Amendment) Act 2020

2020 3

An Act to amend the Microenterprise Loan Fund Act 2012 to increase the maximum amount of moneys that the Minister for Business, Enterprise and Innovation may grant under that Act to Microfinance Ireland; to extend the borrowing powers of Microfinance Ireland under that Act and, for that purpose, to increase the maximum aggregate amount of borrowings under that Act by Microfinance Ireland; to amend the European Investment Fund Agreement Act 2018 to increase the maximum aggregate liability in respect of contributions committed by the Minister for Business, Enterprise and Innovation and the Minister for Agriculture, Food and the Marine under all agreements entered into under that Act for the time being in force; and to provide for related matters.

[10 July 2020]

Be it enacted by the Oireachtas as follows:

1 Definition

1. In this Act, “Act of 2012” means the Microenterprise Loan Fund Act 2012.

2 Amendment of section 2 of Act of 2012

2. Section 2 of the Act of 2012 is amended, in subsection (1), by the insertion of the following definition:

“ ‘promotional financial institution’ means—

(a) the Strategic Banking Corporation of Ireland, or

(b) any other national promotional bank or institution, other than the Social Finance Foundation, within the meaning of Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No. 1291/2013 and (EU) No. 1316/2013 - the European Fund for Strategic Investments¹ 1;”.

¹ OJ No. L169, 1. 7.2015, p.1

3 Amendment of section 5 of Act of 2012

3. Section 5 of the Act of 2012 is amended, in subsection (2), by the substitution of “€95 million” for “€25 million”.

4 Amendment of section 7 of Act of 2012

4. Section 7 of the Act of 2012 is amended—

(a) in subsection (1)—

(i) by the substitution, in paragraph (a), of “the Fund,” for “the Fund, or”,

(ii) by the substitution, in paragraph (b), of “section 8, or” for “section 8.”, and

(iii) by the insertion of the following paragraph after paragraph (b):

“(c) loaned to it by a promotional financial institution in accordance with subsection (1) of section 8A.”,

and

(b) by the substitution of the following subsection for subsection (2):

“(2) Where moneys (other than moneys standing to the credit of the Fund) for the time being standing to the credit of accounts held by the subsidiary are, by reason of a default or defaults in the payment of moneys due to the subsidiary pursuant to an agreement or agreements providing for the making of a loan or loans to which subsection (1) applies, insufficient to enable the subsidiary to pay (in whole or in part) to—

(a) the Social Finance Foundation, any sum the payment of which falls due in accordance with terms or conditions referred to in subsection (4) of section 8, or

(b) a promotional financial institution, any sum the payment of which falls due in accordance with terms or conditions referred to in subsection (1) of section 8A,

the subsidiary shall pay the sum due to the Social Finance Foundation or the promotional financial institution concerned, as the case may be, out of moneys for...