1 An SME (small to medium-sized enterprise) is defined by the EU as a business with less than 250 employees, turnover of less than €50,000,000 and/or balance sheet value of less than €43,000,000.
2 This review process will apply to specific individual declined applications for credit up to €500,000. This will not exclude borrowers from applying who may have other credit facilities which when aggregated are above this limit.
The following types of borrowing are
excluded from the Credit Review Office review process:
Decisions of participating institutions to refuse formal applications for;
- Credit facilities which contravene EU State Aid rules
- Individual credit facilities in excess of €500,000
- Individual credit facilities below €1,000
- Credit facilities sought prior to the issuing of the Credit Review Office guidelines.
3 The participating banks are those engaging with NAMA,
- Allied Irish Banks
- Bank of Ireland
- Anglo Irish Bank
- EBS
- Irish Nationwide
Note: Ulster Bank has implemented its own internal credit appeals system for its clients. This does not form part of the Credit Review Office procedures but allows an internal review of rejected applications for credit, to Ulster Bank customers.
4 The Credit Review Office review process covers decisions of participating banks to refuse formal applications on all forms of credit extended by banks, including but not limited to, term loans or overdrafts, finance and leasing, and invoice discounting.
Appeals are welcomed for the following reasons;
Direct credit refusals
- A refusal to lend on a written credit application from €1,000 up to €500,000
- A credit application which has been sanctioned by the participating bank but at a lower level than requested
- Refusal to assist with the restructuring of credit facilities up to €500,000
- Withdrawal or reduction of credit
Constructive credit refusals
- When a decision on an application for review is not given by the participating bank within 15 working days, this shall be regarded as constructive refusal and the borrower may appeal to the Credit Review Office.
- Where the borrower considers that the terms or conditions attached to a credit facility or its price are so onerous as to amount to a constructive refusal, the borrower is entitled to apply for a review. The Credit Review Office will issue guidance on the reasonableness of the terms, conditions and pricing on such applications.