308. Deputy Michael Fitzmaurice asked the Minister for Enterprise, Tourism and Employment the policy objective and any evidence that it represents good value for public money to award a 1% discount on Microfinance Ireland loans, where the application has been prepared with Local Enterprise Office assistance; and if he will make a statement on the matter. [51409/26]

309. Deputy Michael Fitzmaurice asked the Minister for Enterprise, Tourism and Employment the percentage of approved Microfinance Ireland loans that were prepared with Local Enterprise Office assistance; and if he will make a statement on the matter. [51410/26]

I propose to take Questions Nos. 308 and 309 together.

The partnership between the Local Enterprise Offices (LEOs) and Microfinance Ireland (MFI) is an important element of the State's enterprise support infrastructure, combining access to finance with business development supports for micro-enterprises throughout the country.

Microfinance Ireland was established to address a financing gap for viable microenterprises that are unable to secure lending from commercial providers. It provides loans of between €2,000 and €50,000 to businesses that cannot obtain finance elsewhere. The 1% interest rate differential between applications submitted through the Local Enterprise Office network and direct applications reflects the additional supports available through the LEOs and is intended to encourage engagement with the wider enterprise support ecosystem.

LEOs work in partnership with MFI to promote and support the loan scheme through local marketing and outreach activities, supporting potential applicants, initially assessing the quality of business proposals and providing pre- and post-approval mentoring where required and agreed with the relevant LEO.

The mentoring supports available through the LEO Mentor Panels assist applicants in preparing business plans and financial projections before submitting applications to MFI. They provide expert guidance on the documentation and application process and help applicants demonstrate the commercial viability of their business proposals. Following loan approval, MFI borrowers can also avail of free business mentoring through the Local Enterprise Office network, with start-up businesses eligible for up to five mentoring sessions and established businesses eligible for up to three sessions.

The collaboration between MFI and the LEO network also supports early intervention where businesses encounter difficulties. The provision of advice and mentoring by Local Enterprise Offices, following referrals through MFI's collections process, helps businesses address challenges at an early stage and supports the retention of employment. LEO supports for MFI borrowers should produce positive impacts on the employment potential of those businesses, while the upskilling of MFI borrowers thorough LEO mentoring and training should also produce stronger businesses with better repayment records.

The value of this approach is reflected in the strong level of engagement with the LEO network and the outcomes delivered by Microfinance Ireland. Applications referred through the LEO network accounted for 48.3% of all MFI loan approvals in the period from October 2012 to June 2026. The proportion has increased in recent years, with applications submitted through the LEO network accounting for more than 50% of approvals since 2024, rising to 62.2% of all approvals in 2025. From January to June 2026, applications submitted through the LEO network accounted for 55.8% of all approved MFI loans.