According to the Central Statistics Office (CSO), SMEs accounted for 99.8% of all active enterprises in Ireland in 2023. They also accounted for 66.9% of the total persons employed. Over half of all SMEs (54.8%) in the Irish business economy in 2023 were in the services sector.
The Central Bank of Ireland reported that the total SME bank debt fell from EUR 18.4 billion in Q1 2023 to EUR 17.7 billion in Q1 2025. Much of the decline can be attributed to repayments exceeding new lending figures: annual repayments were estimated to be EUR 1.7 billion at the end Q4 2024, while gross new lending for the same period was EUR 1.2 billion.
Gross new lending to core SMEs (all non-financial and non-property related sectors) stood at EUR 4.4 billion in 2024. This reflected a year-on-year increase of EUR 320 million, the largest in several years. Survey data from the SME Credit Demand Survey show that demand for bank credit for SMEs in Ireland has shown a slight but steady increase over the last 2 years. However, many SMEs in Ireland remain hesitant to seek external funding for investments, with 74% of the SMEs that did not apply for credit stating that having sufficient internal funds was the reason.
Loan approval rates have increased slightly, with 92% of all applications for 2024 (excluding “still pending”) either fully or partially approved.
The interest rate on new SME loan drawdowns decreased by 11 basis points over the quarter and stood at 5.14% for Q4 2024. This follows a fluctuation in rates, with the cost of credit on new SME loans peaking in Q4 2023 at 5.62% and then experiencing a steady decline in H2 of 2024.
The Government of Ireland implemented a range of measures to assist SMEs, including primary producers, in dealing with the rising costs of energy, together with an increased inflationary environment, as a consequence of the large-scale aggression of Russia against Ukraine. In July 2024, the Irish government launched the National Enterprise Hub with the view to streamline access to over 250 government supports for SMEs. In January 2023, the Ukraine Credit Guarantee Scheme worth EUR 1.2 billion was launched. This was aimed at providing low-cost working capital to SMEs, primary producers, and small mid-caps, and was available through several lenders from the bank, non-bank and credit union sectors. This scheme closed on 31 December 2024.
Since March 2015, Ireland’s national promotional bank, the Strategic Banking Corporation of Ireland (SBCI) is working closely with the Department of Enterprise, Tourism and Employment, the Department of Agriculture, Food and the Marine and the Department of Finance in the design and implementation of a number of SME credit-related support and investment schemes. One key programme being deployed is the Growth and Sustainability Loan Scheme. In September 2023, this EUR 500 million scheme was launched, with the aim of providing longer-term lending. Loans under these schemes have been made available through the three main banks, together with other lenders from the non-bank and credit union sectors. The Scheme will operate until 30 June 2026 or until the scheme has been fully subscribed (whichever is earlier). Up to 31 March 2025 1 651 loans were approved, to the value of EUR 367.4 million. Following approval, 1 448 loans were drawn down, to the value of EUR 278.1 million. The Growth and Sustainability Loan Scheme is achieving a high take up, with the full lending capacity anticipated to be utilised in advance of the end date. The overriding objective of these schemes was to provide flexible funding for those firms that require it. More details on these schemes are provided in the full country profile.
Credit Review was established in 2010 to assist SMEs and farm borrowers who have been refused bank credit, including an SBCI product. It helps SMEs whose applications for credit of up to EUR 3 million have been declined or reduced by the participating banks, and who feel they have a viable business proposition. This is a strictly confidential process between the business, Credit Review, and the bank. Credit Review received 1 425 formal applications by the end of 2024. Of these, 1 014 have reached a conclusion, with Credit Review upholding appeals in favour of 597 borrowers. More details on these schemes are provided in the full country profile.