THE Small Business Loan Scheme, an initiative by the International Fund for Ireland which the organisation says has created 900 jobs in two years, and which it says could create another 1,500, has been handed over to a new company - the Emerging Business Trust.

The new company, chaired by economist Mr John Simpson, takes over the management of the £3 million loan book built up by the IFI to help over 200 companies develop their businesses in disadvantaged areas.

Originally introduced with the help of a £250,000 grant from the IFI, the Small Business Loan Scheme has provided loans ranging from £5,000 to £15,000, repayable at up to five years at 6 per cent. Over 700 companies have applied, and 211 have been given assistance so far.

IFI chairman Mr William McCarter says that as a result of the success of the loan scheme, funds of £5 million have been placed at the disposal of the new company, with additional contributions from the Bank of Ireland the European Union Peace and Reconciliation Fund, and the small business agency LEDU. Mr McCarter said that the scheme was one of the most effective in the EU.

Meanwhile, the Bank of Ireland is to make available £1.75 million in loans to small businesses, of which £500 000 is being contributed to the Emerging Business Trust.