Mary Lou McDonald
Question:464. Deputy Mary Lou McDonald asked the Minister for Business, Enterprise and Innovation the business supports she has put in place for self-employed persons with a disability. [8058/20]
View answerWednesday, 27 May 2020
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Written answers
Ireland has a diverse SME ecosystem, of innovation driven enterprises, high-technology and high-growth, rural, owner-managers, family owned, traditional sectors, and a diverse profile of business owners including those with disabilities.
The OECD review of SMEs and Entrepreneurship in Ireland which I commissioned recognises that there is well-spring of entrepreneurship right across the country. It also recognises that the Local Enterprise Offices have made a marked improvement in the promotion of and supports for entrepreneurs and it is the LEOs that are the first stop shop for anyone thinking of starting a business, including those with disabilities.
The 31 Local Enterprise Offices (LEOs), located in the Local Authorities nationwide offer advice and guidance, financial assistance and other supports for anyone intending to start or grow a business. They operate on an equal opportunities basis and offer their services to any entrepreneur, regardless of their situation, in a fair and even-handed manner and in compliance with Government policy and all legal requirements.
The LEOs provide a ‘signposting’ service in relation to all relevant State supports available through agencies such as Revenue, the Department of Social Protection, Education and Training Boards, the Credit Review Office and Microfinance Ireland. In that regard, information in respect of a client’s disability or otherwise is not relevant, this also applies to the collation of the LEO Annual Employment Survey with regard to individuals employed in businesses supported by the 31 Local Enterprise Offices.
The LEOs can offer direct grant aid to any microenterprises (up to 10 employees) in the manufacturing and internationally traded services sector which, over time, have the potential to develop into strong export entities. Subject to certain eligibility criteria, the LEOs can provide financial assistance within three main categories
- Feasibility Grants (investigating the potential of a business idea)
- Priming Grants (to part-fund a start-up)
- Business Development grants for existing businesses that want to expand.
For Start- ups or expanding businesses, the LEOs may be able to offer ‘soft’ support in the form of training or provide a mentor to work with the business proposer including courses such as:
- The Start Your Own Business programme guides clients through the various aspects of business and business planning. The objective is to assist clients in assessing their idea, its viability and to decide if they should proceed or take a step back.
- The Mentor Programme is designed to match up the knowledge, skills, insights and entrepreneurial capability of experienced business practitioners with small business owner/ managers who need practical and strategic one to one advice and guidance.
Full detail on LEO supports are available on the Local Enterprise Office website at https://www.localenterprise.ie/Discover-Business-Supports/.
Government has also responded rapidly to put in place appropriate supports for businesses that have been negatively impacted by Covid-19 but has not specifically introduced loan supports for self-employed persons with a disability. The Government continues to explore every available avenue for the delivery of further supports. To date, supports to businesses include:
- Microenterprises can access Covid-19 loans of up to €50,000 from Microfinance Ireland. Loans are available at an interest rate of between 4.5% and 5.5%, with the first six months interest and repayment free. Businesses can apply through their nearest LEO or directly at microfinanceireland.ie.
- The SBCI Covid-19 Working Capital Scheme for eligible businesses opened for eligibility applications on 23 March. The maximum loan size under the scheme is €1.5m (first €500,000 unsecured) and the maximum interest rate is set at 4%. Eligibility criteria apply. Applications can be made through the SBCI website at sbci.gov.ie
- The Credit Guarantee Scheme supports loans of up to €1m for periods of up to seven years. Applications can be made to AIB, Bank of Ireland and Ulster Bank.
These schemes aside, we will also be supporting additional lending through the banks for longer-term loans to aid with strategic investment as the COVID-19 crisis moderates. To further assist companies to respond to these challenges, and in doing so stabilise and rebuild their business, Enterprise Ireland, on behalf of the Department of Business Enterprise and Innovation has launched a new suite of COVID-19 supports; these are:
- Sustaining Enterprise Fund: This €180 million fund will provide support to eligible manufacturing and internationally traded services companies employing 10 or more employees who have been impacted by a 15 per cent or more reduction in actual or projected turnover or profit, and/or have a significant increase in costs as a result of the COVID-19 outbreak. The objectives of the scheme are to:
- Ensure eligible companies have access to the necessary liquidity; and
- Sustain business so that companies can return to viability and contribute to the recovery of the Irish economy.
The Fund will provide financial assistance in the form of repayable advances of up to a maximum of €800,000 per company.
This fund will provide a €25k to €50k short term working capital injection to eligible smaller companies to support business continuity and strengthen their ability to return to growth and be trading strongly within a three year time frame.
- NEW HPSU: This fund is aimed at EI High Potential Start-Up companies who, due to the Covid-19 pandemic are facing delays to projected sales growth and whose fundraising plans are significantly impacted or stalled. Under this fund, HPSUs can apply for co-investment of €50,000 per undertaking in the form of equity or convertible debt instruments.
In addition to this fund Enterprise Ireland has launched the following supports:
- Covid-19 Business Financial Planning Grant: A €5k grant for eligible companies to work with third party consultants to prepare a detailed financial plan with forecasts and assumptions. 337 applications have been received for Covid-19 Business Financial Planning Grant.
- Lean Business Continuity Voucher: A €2.5k voucher for eligible companies to access training or advisory services support related to the continued operation of their business during the current pandemic. 156 applications have been received for the LEAN Business Continuity Voucher.
- Covid-19 Online Retail Scheme is a grant for retail companies with greater than 10 employees to develop a more competitive online offer. This competitive call has a budget of €2 million. Successful applicants will receive funding support of up to 80% of project costs, with a maximum grant of €40,000.
Enterprise Ireland provides support for new start-ups and existing business through a wide range of initiatives and supports. The awarding of funding by the agency is based on eligibility, evaluation criteria and assessed company need.
I will continue to ensure equal opportunities for entrepreneurship across the population and to address gaps in the self-employment and entrepreneurship activity rates of those with disabilities. My agencies continue to work very closely with the Department of Employment Affairs and Social Protection and Intreo Offices in every county to ensure those seeking to get back to work or start a business are aware of the range of supports available.
Question No. 465 answered with Question No. 408.
Question No. 466 answered with Question No. 462.