Bank of Ireland launches its second National Enterprise Week – 24-28 May 2010

Actively supporting business recovery in the SME sector

Bank of Ireland today, 23 May 2010, launched its second National Enterprise Week which will feature over 60 tailored advice seminars along with showcasing opportunities in branches for business owners, taking place across its retail branch network from Monday 24 to Friday 28 May 2010. The week long initiative, which is open to both customers and non-customers, is being held as part of the Bank’s ongoing commitment to actively support business recovery in the SME sector by providing them with the necessary financial support and practical advice during the current challenging trading environment.

This two-stranded approach aims to provide advice events for businesses with an opportunity to meet with leading industry experts, and learn from their experiences, while the ‘Show your Business’ element will give businesses a platform on which to promote their product/service in our branches to a new marketplace and to network with other businesses who face similar challenges. The initiative has been recognised as part of European SME Week 2010, which takes place across Europe between 25 May and 1 June.

According to Michael Lauhoff, Head of Small Business and Agri, Bank of Ireland: “The extensive positive feedback we received from businesses and local communities following the inaugural event last year and the two subsequent ‘Show your Business’ weeks held in October and December, served to highlight the importance of continuing to offer tangible advice and information to SMEs, along with supporting the financial needs of sustainable and viable businesses through these challenging times.

“Recent research we conducted with our branch managers/business advisors indicated that progressive and more innovative businesses that have adapted their business to changes in the marketplace as early as possible, are the businesses who are best positioned for an upturn in the economy. It also highlighted that many customers still perceive credit as unobtainable, as many have expressed surprise when their applications were approved. Our message is that if you are a viable business (i.e. have a good business plan, sound knowledge of your market and have the capacity to meet repayments) we will support you financially.

“Our commitment to the SME sector remains steadfast. We continue to approve four out of every five loan applications received. Our approval rate has been consistently around 80% over the past three years, albeit against the backdrop of a reduced number of applications. In the first four months of 2010 we approved approximately €1 billion of facilities for our SME customers and continue to provide overdraft facilities to the value of €2.2bn. While usage of these overdraft facilities will fluctuate on a daily basis, on any given day average usage is less than €1.1bn. This means that over half of the overdrafts we approve for our SME customers are not being utilised. We have a number of specialist funds available to small businesses and we have given a commitment to Government to make €3 billion in new lending facilities available to this sector this year and in 2011.

“A key focus for us is supporting customers in difficulty. Given the challenging conditions, we have undertaken an internal restructuring, and our most experienced bankers are now working to help and support these customers. We have made available significant additional resources to implement our ‘early intervention initiative’ which is a pro-active contact programme with customers where a deteriorating trend is emerging in the operation of their bank accounts. Our objective is to work out a structured proposal to help them address the issue. As always, we would ask customers to come to us as informed as possible regarding their current financial position and the potential implications of any issue identified for the business”, concluded Michael Lauhoff.

The advice events will take the format of breakfast briefings, enterprise evenings, presentations and seminars, on themes such as ‘Starting/Maintaining – Getting the most out of your business’, ‘Succeeding in a challenging environment’, ‘Combating the recession’ and ‘Diversifying your business in challenging times’. A variety of speakers will discuss topics such as credit management, overhead control, going green, employment law and company tax. Speakers will include local business service providers (accountants and solicitors), successful local entrepreneurs, industry experienced panellists who operate the Bank’s independent mentoring service, Enterprise Builder, alongside senior management from various parts of the business.

For the most up to date information on events taking place across the country during National Enterprise Week log onto www.bankofireland.ie/business (click on business events) or contact your local branch.

Ends

Contact:

Anne Mathews
Media Relations Manager
Bank of Ireland
Tel: 076 623 4771

Notes to Editor:

A selection of events happening across the country include:

College Green branch will host the Irish Farmers Market on Monday 24 May and Tuesday 25 May in the forecourt of the building following which it will move to Baggot Street branch on Friday 28 May. College Green will host a green themed event on Wednesday 26 May. A selection of artists will showcase in Baggot Street and College Green on Wednesday, 26 May and Thursday, 27 May.

A business breakfast will be held in Dunhill Multi-Education Centre, Waterford on Tuesday 25 May – theme is making your business more ‘green’. Speakers include Senator Dan Boyle from the Green Party who will discuss the importance of making business more energy efficient and environmentally friendly.

A business breakfast will be held in the House of Lords, Bank of Ireland College Green on Wednesday, 26 May, entitled ‘Promoting and Growing your Business’. Mark Cunningham, Director, Bank of Ireland Business Banking will give an overview of the economic climate and the supports the Bank offers to assist SMEs. Guest speakers include Rick Kelley, Head of Mid Market Sales in EMEA, Facebook who will discuss how to promote your business and Margaret E Ward, Managing Director of Clear Ink who will present on getting your message across in clear English.

There will be a business breakfast in Thomand Park Stadium, Limerick on Thursday, 27 May. Sean Gallagher, entrepreneur and Dragon from Dragons’ Den will recount his own business story. MC for the event will be provided by former Munster rugby player Frankie Sheehan.

A business evening networking event will take place in the Ardilaun Hotel in Galway on Thursday, 27 May. Guest speakers include Neil Hughes, corporate recovery specialist at Dublin and Enniscorthy based Hughes Blake Chartered Accountants. Neil who has recently published his own book ‘Beating the recession – the seven Cs of business recovery’ will present on ‘Beating the Recession’. Declan Flood from Irish Credit Management Training will discuss ‘Managing your Cashflow’.

A business networking breakfast is being held in conjunction with Carton House, Maynooth on Friday, 28 May 2010. Entitled ‘A return to positivity’, guest speakers will include Jim O’Hara, General Manager, Intel Ireland, Mickey Harte, Manager of Tyrone Football team and author of ‘Presence is the only thing’. John Scanlon, Director of Commercialisation, NUI Maynooth will also speak at the event.

Specialist SME Funds Include

The Business Support Fund (€250m) was introduced in December 2008 to provide flexible finance to viable businesses. In the first quarter of 2010, €10.5m was drawn down. This is increase of 4.2% on the fourth quarter of 2009 which saw just over €10.1m drawn down, and brings total drawdowns for the fund to date to €56.8m to over 1,400 customers.

Developing Business Fund (€100m) is a fund for lending to new and developing businesses for investment purposes. Maximum amounts available under this fund are €50,000 and is therefore targeted at small and micro businesses. In the first quarter of 2010 €4.57m was drawn down from this fund, an increase of 6% on the fourth quarter in 2009. A total number of 232 customers were supported through this fund in-Q1 2010.

European Investment Bank Loan Fund (€100m) – The Bank rolled out the fund in June 2009. As at the end of March 2010, pipeline of projects valued at €59.8m received credit approval and formal offers have been issued to these customers. Total drawn down, as at March 31, was €18.9m. Examples of projects supports through this fund include: financing to assist a 24 bed extension to an existing nursing home in South Leinster, a loan to fund the purchase of a fishing vessel in the West and funding for the construction of a maize shed and slatted tanks for a farm in Co Cork.

Environmental Funds (€200m) – In relation to the Environmental Projects Fund, €35.44m has been drawn down to date primarily for wind energy projects. Of this €0.6m was drawn in the first quarter of 2010. There is a further pipeline of approximately €68m at various stages of negotiation. By end of March 2010 €1.3m has been drawn form the Green Fund by a total of 41 businesses with an average loan amount of €31,000.

€26m new venture seed capital fund – Response to this fund has been strong with a significant number of enquiries recorded – total investment completed €950,000.

Support Initiatives

Enterprise Builder is the Bank’s independent mentoring initiative designed for SME customers to help and support them through these challenging times. The confidential and free service was launched last October consists of a diagnostic review provided by an independent and qualified mentor who has industry experience in the sector in which the business operates. It offers a panel of over 70 mentors from all industries including IT, marketing, engineering, retail and hospitality. Based on information provided by the customer, an appropriate mentor will be assigned to meet with them at a location of their choice, review their business, challenge them and assist them in achieving their business goals.