knowledge 15 July 2026 |

Credit Review Act 2026 Commenced: Support for SME Sector Crystallised

Following its signing into law in February 2026, the Credit Review Act 2026 (the “Act”) has now been commenced. The Act was commenced in two parts, with certain provisions coming into operation on 24 June 2026 and the remaining provisions coming into operation on 1 July 2026. The Act places An tSeirbhís um Athbhreithniú Creidmheasa (the “Credit Review Service”) on a stand-alone legislative footing. The Credit Review Service’s primary role is to examine banks’ lending decisions relating to the refusal to provide credit to small and medium enterprises (“SMEs”), including farm businesses. In recognition of the important role that SMEs and farms play in the Irish economy, the Act seeks to support those entities in obtaining access to bank credit.

Credit Review for SMEs Placed on a Stand-alone Statutory Basis

The Act has been described in the Houses of the Oireachtas as a largely technical endeavour to create a stand-alone statutory basis for the credit review service, which has been providing an appeals mechanism for SMEs whose credit applications have been declined since its establishment in 2010 under the National Asset Management Agency Act 2009. With a view to enhancing fairness and transparency in credit institutions’ lending decisions, the functions of the new Credit Review Service include:

• reviewing credit decisions of relevant persons;
• reviewing lending practices, activities and policies of relevant persons; and
• providing support and information to Irish SMEs in the process of securing bank credit.

The Credit Review Service’s key role is to assess the business case of a loan, taking into account the prospective borrower’s creditworthiness, and to determine whether the lender’s decision should be upheld or whether to recommend that the lender provide credit to the SME or make other appropriate recommendations. Notwithstanding the autonomy of the lender to make its own commercial decisions, an intervention from the Credit Review Service obliges the lender to provide reasoning as to its rejection of a credit application in the event of its non-compliance with a Credit Review Service recommendation.

Scope of the Act

The Act provides an informal appeals service for borrowers that have been denied bank credit, permitting the Credit Review Service to review the lending practices and credit decisions of relevant persons, which are defined as credit institutions entering into, or offering to enter into, credit facility agreements or alternative arrangements with borrowers. For the purposes of the Act, a ‘borrower’ is an SME or a farmer acting in such capacity, while ‘credit’ has been given a wide meaning, covering “a deferred payment, cash loan or other similar financial accommodation, including (but not limited to) hire-purchase, invoice discounting and the letting of goods”.  

In relation to what is considered a ‘credit facility’ for the purposes of the Act, the Minister for Finance is required to set prescribed minimum and maximum amounts in respect of this. These amounts have now been set out in the recently published Credit Review Act 2026 (Prescribed Amounts and Fee) Regulations 2026 (the “Regulations”), which came into operation on 1 July 2026. The Regulations prescribe that to come within the Act, a credit facility must have a value of between €1,000 and €3m. This follows the amounts that applied to credit facilities under the old process. The Regulations also set out the fees to be paid by borrowers to the Credit Review Service in respect of an application for review. The Regulations, in line with the Act, set out that the fee payable depends on the credit facility amount in question.

The Act sets out the circumstances in which credit decisions will be eligible for review within corresponding specified timeframes, including:

• refusal or constructive refusal of a borrower’s application to enter a credit facility agreement;
• withdrawal from the borrower of a credit facility granted pursuant to a credit facility agreement;
• reduction of the amount of credit to be offered to the borrower pursuant to a credit facility agreement or an alternative arrangement;
• refusal or constructive refusal of an application by a borrower to enter an alternative arrangement; and
• withdrawal from the borrower of an alternative arrangement in relation to a credit facility agreement.

The Act further provides that the Minister for Finance may in the future extend the Credit Review Service’s scope so that the refusal of credit and lending decisions of regulated non‑bank entities may also be appealed, in light of developments in the SME lending environment.

Establishment of the Credit Review Service

The Act provides for the Minister for Finance to appoint an ‘establishment day’ for the Credit Review Service and provisions to ensure its adherence to the appropriate standards. This includes rules relating to the appointment and functions of the chief executive officer of the Credit Review Service, known as the Credit Reviewer, and that officer’s accountability to the Minister for Finance and committees of the Oireachtas.

The Credit Review Act 2026 (Establishment Day) Order 2026 was recently published which appoints 1 July 2026 as the day on which the Credit Review Service was established to perform the functions conferred on it by the Act.

Next Steps

Now that the Credit Review Service has been established under the Act, relevant persons should familiarise themselves with the credit review process as set out under the Act, including requirements on relevant persons in relation to the review of lending practices, activities and policies. Relevant persons should also note that the Act provides for a ‘credit review levy’ to be paid by relevant persons “having regard to the costs incurred in the period concerned by the Service in the performance of its functions under this Act”. Further details on the levy to be paid, including relevant dates and how the levy is calculated are set out in the recently published Credit Review Act 2026 (Credit Review Levy) Regulations 2026 which also came into operation on 1 July 2026.

How can McCann FitzGerald LLP help?

McCann FitzGerald LLP is a premier law firm in Ireland and advises on the full range of legal, tax and compliance activities undertaken by regulated financial service providers in Ireland. If you would like to discuss further or require any advice on implementing the new requirements under the Act or the related regulations and order, please contact us.