AIB is making €500 million available to lend to small businesses, to support them through difficult economic conditions.

It’s part of the bank’s recapitalisation commitment to the government to lend an additional €6 billion to small and medium enterprises before the end of next year.

Each business will have to complete a ‘viability plan’ and provide certain information to AIB to enable it to make a credit decision, before they can benefit from the scheme.

It is the first in what is expected to be a series of moves from Irish banks aimed at getting credit flowing for small businesses again, following talks between bank management and the Enterprise Minister.