PwC Ireland<\/a>, says.<\/p>\nOn the supply side, state-backed channels are expanding.<\/p>\n
One notable development is the Strategic Banking Corporation of Ireland\u2019s (SBCI) partnership with the European Investment Bank (EIB), announced last March, which is unlocking \u20ac560m in new financing for SMEs.<\/p>\n
\u201cMicrofinance Ireland also plays an important role in supporting micro-businesses that can\u2019t get bank funding, with total loan approvals to date nearing \u20ac100m,\u201d Gilbride says.<\/p>\n
\u201cOverall, state supports are strong, but I think streamlining processes and increasing awareness on financing options would be a great help to SMEs. SBCI\u2019s own research shows that 71 per cent of SMEs see access to finance as a key risk.\u201d<\/p>\n
A key trend observed by PwC Ireland is the increase in non-bank activity, including private credit funds, which remain important for transaction-led and growth capital needs. According to the most recent Banking & Payments Federation Ireland data, about one third of new SME lending value comes from non-bank lenders.<\/p>\n
In this context, Gilbride sees demand for SME credit as steady at present, with companies taking a more blended approach to funding than ever before.<\/p>\n
\u201cThat shift is visible from what we have seen. Our clients are combining bank term loans with specialist non-bank options ranging from working capital solutions to unitranche and cashflow facilities,\u201d she says.<\/p>\n
In Gilbride\u2019s experience, non-banks have become vital for deal-making, capital expenditure and acquisitive growth. At the same time, she says, the stabilisation in new lending rates is encouraging SMEs to re-engage with longer-term investment.<\/p>\n
\u201cIt\u2019s clear to us that alternative lenders have moved centre stage. Credit unions are also stepping into a much bigger role. From September 2025 their business lending capacity has jumped to 15 per cent of assets, which is dramatically expanding potential SME funding,\u201d she notes.<\/p>\n
\u201cThese changes mean SMEs have more choice, more regional access points and more competition \u2014 which all naturally works in their favour.\u201d<\/p>\n
PwC\u2019s 2026 Global CEO Survey shows that 63 per cent of Irish CEOs expect economic growth to improve, and, despite uncertainty, many are prioritising investment in sustainability and reinvention. With interest rates stabilising, businesses finally have predictability to invest in energy upgrades, automation and artificial intelligence (AI).<\/p>\n
\u201cIn the current climate, SMEs are being asked to transform digitally, operationally and environmentally. This requires capital,\u201d Gilbride says.<\/p>\n
\u201cIreland\u2019s macro-economic backdrop of strong domestic demand and supportive public investment further raises the stakes. Those SMEs that can secure funding now will be in a better position to scale and compete internationally.\u201d<\/p>\n
From conversations PwC Ireland has had with businesses of all sizes, investment appetite is back.<\/p>\n
SMEs are raising debt for capital investment, mergers and acquisitions, digitisation and working capital, according to Gilbride.<\/p>\n
PwC\u2019s CEO Survey highlights major reinvention priorities such as the adoption of AI, efficiency gains and climate investment.<\/p>\n
\u201cMany business owners prefer debt over equity to avoid dilution, especially for predictable projects that generate cashflow. The Growth and Sustainability Loan Scheme supports exactly this kind of long-term investment as it backs both growth and climate action,\u201d Gilbride says.<\/p>\n
\u201cAnd with new lending rates stabilising for SMEs, borrowing is more attractive for financing expansion without having to sacrifice ownership.\u201d<\/p>\n
Overall, Gilbride\u2019s outlook on the SME financing environment for 2026 is optimistic. Bank lending remains solid, but the real story for her is in the broadening ecosystem.<\/p>\n
\u201cPrivate credit firms are continuing to increase fund size and scope; we\u2019re seeing indigenous, fast-growing fintech lenders and potential new ownership at challenger banks. This all points to deeper competition and more tailored funding options for SMEs,\u201d she says.<\/p>\n
\u201cNon-bank lenders already provide a large share of SME lending, and we expect this to keep rising in 2026. Private equity will also stay active. Despite global volatility, Ireland\u2019s mid market remains attractive, with PE involved in roughly one in four deals in 2025.<\/p>\n
\u201cWith interest rates stable and capital increasingly diversified, 2026 should offer SMEs more flexibility, more partnership options and more confidence to invest.\u201d<\/p>\n
![\"PwC](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/02\/PWC-Ireland.jpg\")
From PwC Ireland\u2019s perspective, access to finance has eased in the past year for SMEs, helped by stabilising interest rates and more active lenders in the market.<\/p>\n
REASONS FOR OPTIMISM<\/p>\n
PwC Ireland\u2019s team maintains strong relationships with both SMEs and the lending ecosystem, meaning it is close to the latest developments in financing options. A few recent standouts include:<\/p>\n
SBCI-EIB partnership unlocking \u20ac560 million in affordable SME credit.<\/p>\n
Credit union lending reforms, boosting SME and construction lending headroom more than threefold.<\/p>\n
Enterprise Ireland\u2019s \u20ac250m Seed & Venture Capital Scheme (2025-2029), strengthening early-stage equity supply.<\/p>\n
Increase in the number of Irish private equity (PE) firms over the past number of years, together with foreign PE firms investing in the Irish market.<\/p>\n
Momentum from alternative lenders alongside ongoing consolidation moves, for example, acquisition talks around Finance Ireland, which signal further changes in the lending landscape.<\/p>\n
Photo: Laura Gilbride, deals partner, PwC Ireland<\/p>\n","protected":false},"excerpt":{"rendered":"With interest rates now more predictable and competition and supports strengthening on the supply side, PwC Ireland is…\n","protected":false},"author":2,"featured_media":295814,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[61,60,43],"class_list":{"0":"post-295813","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ireland","8":"tag-ie","9":"tag-ireland","10":"tag-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/295813","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=295813"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/295813\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/295814"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=295813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=295813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=295813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}