The Small Firms Association (SFA) says it does not believe that the Government's Nama plan will be enough to get credit flowing to small businesses around Ireland.
Finance Minister Brian Lenihan says the primary purpose of the National Assets Management Agency (Nama) is to free up Irish banks to resume normal lending to the business sector.
However, the SFA, which is holding its annual conference in Dublin today, says it is not convinced that this will work on its own.
The association is calling for a state-backed loan scheme for small businesses to offset the effects of the credit crunch.
It is also reiterating its call for a reduction in the size of the public sector and pay cuts for public servants as part of measures to restore balance to the public finances.