Dáil Éireann Debate, Wednesday - 27 May 2020
437. Deputy Johnny Mythen asked the Minister for Business, Enterprise and Innovation if the criteria of the new restart grant will be changed to across the board and not be based on the commercial rates of 2019 in view of the fact some businesses due to their nature have been impacted more than others and have suffered a larger loss of earnings. [7634/20]
View answerThe application forms for the new €250m Restart Grant providing direct grant aid to micro and small businesses is available online on all local authority websites since Friday 22nd May. Eligible businesses who have remained open, or that reopened under phase 1 on 18th May or that are due to reopen in Phase 2 on 8th June under the Government’s Roadmap for Reopening Society and Business to ease the COVID-19 restrictions are encouraged to apply now for the Restart Grant. These applications will be prioritised for payment by the local authorities.
The Restart Grant is aimed at helping micro and small businesses with the costs associated with reopening and re-employing workers following COVID-19 closures.
To avail of the Restart Grant, applicants must be a commercial business and be in the Local Authorities Commercial Rates Payment System and:
1. have an annual turnover of less than €5m and employ between 1 to 50 people;
2. have suffered a projected 25%+ loss in turnover to end June 2020;
3. commit to remain open or to reopen if it was closed;
4. declare the intention to retain employees that are on The Temporary Wage Subsidy Scheme and re-employ staff on the Pandemic Unemployment Payment as business recovers.
Subject to the qualifying criteria outlined above, any business that has a commercially rateable premises including those businesses with outstanding rates bills are eligible to make an application if they meet the criteria. The grant will be the amount of the rates demand in respect of calendar year 2019 only, subject to a minimum of €2,000 and a maximum of €10,000.
If a company is currently in a rateable premise but was not rate-assessed in 2019 it is still eligible to apply. The local authority can pay the grant based on an estimate of what the rates demand for 2019 would have been.
Businesses who are not in a rateable premises are not eligible.
I understand the concerns relating to business that do not operate from commercial premises.
We opted for payment through the rates system because it is a ready-established system for financial transactions with local business so it was the quickest way to get money to businesses.
Tradespersons and service providers that operate on a mobile basis or that could continue to work remotely have been better placed to continue to trade and many don’t have the same levels of losses, of ongoing overheads or reopening costs that a fixed premises business will have. Within the funding available, the priority has been to support those who have suffered most, including closure of the business, but who will still have incurred ongoing costs.
The eligibility criteria is subject to ongoing review and we will continue to take on board issues as they arise.
