AIB SAID yesterday it has supported eight new businesses with seed capital so far this year and is 17 per cent ahead of its target to provide €3.5 billion in lending to the SME sector in 2012.

In its review for the first six months of 2012, AIB said the two seed capital funds that it supports – which have €75 million in total – have made investments in eight new companies.

These include businesses such as medical devices, software for information technology, a new social network business, and a customer relationship management technology business.

AIB said that, as of June 2012, both funds had invested €21.3 million in 59 firms, helping to create and support more than 550 jobs.

In terms of SME lending, AIB exceeded its target of €3 billion in 2011 and is 17 per cent ahead of its target for this year.

The bank said it had sanctioned 92 per cent of formal applications from small and medium-sized businesses so far this year.

The bank said demand for new credit from SMEs remains subdued, as evident in the recently released Mazars lending survey.

To stimulate credit demand, more than €400 million in dedicated funds have been launched to stimulate new lending, in addition to normal lending products.

These are the job creation loan fund, the agri investment programme, and AIB’s Northern Ireland SME fund.

“AIB strongly encourages people to come and talk to us about new lending and refinancing,” John Webb, its head of business banking, said.