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Covid-19 Pandemic Supports

Dáil Éireann Debate, Tuesday - 23 June 2020

Tuesday, 23 June 2020

Questions (378)

Seán Sherlock

Question:

378. Deputy Sean Sherlock asked the Minister for Business, Enterprise and Innovation if business grant support of 20% of 2018 turnover will be approved for SMEs in the event and arts sector to aid with rent and bank loan payments. [12098/20]

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Written answers

The Government has introduced a comprehensive package of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs. Full details on all COVID19 supports for business are available at: https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/

This package is a significant step-up in the supports available for all businesses in all sectors at this very difficult time. The measures have been developed to meet the varying needs of Irish enterprise and they are very specifically targeted by size, sector and need and are targeted at vulnerable but viable companies.

There are a number of loan schemes which have been put in place to assist businesses. The Covid-19 Working Capital Scheme open to eligible SMEs and small mid-caps (businesses of up to 499 employees) is operated by the Strategic Banking Corporation of Ireland (SBCI) in cooperation with the Department of Agriculture, Food and the Marine, and is supported by the InnovFin SME Guarantee facility.

The Future Growth Loan Scheme open to eligible SMEs and small mid-caps currently makes loans available with a term of 8-10 years and is operated by (SBCI) through participating lenders.

The new €2 billion COVID-19 Credit Guarantee Scheme to aid SMEs is a further development of the existing Credit Guarantee Scheme already available. The Scheme will be available to all SME sectors. The implementation of this Scheme will require primary legislation, the drafting of which has commenced.

In addition to this new package of liquidity measures, the full range of Enterprise Ireland, IDA, Local Enterprise Office (LEO) and Údarás na Gaeltachta grant and advisory supports continue to be available to eligible firms to help with strategies to access finance, commence or ramp-up online trading activity, reconfigure business models, cut costs, innovate, diversify markets and supply chains and to improve competitiveness.

Any eligible business, including the self-employed, can apply for the following supports. The most appropriate support will depend on the characteristics of the business.

- MicroFinance Ireland can provide loans of up to €50,000 as an immediate measure to specifically deal with exceptional circumstances that micro-enterprises – (any business -Sole Trader, Partnership or Limited Company with less than 10 full time employees and annual turnover of up to €2m)- are facing.

- Local Enterprise Offices have moved training programmes, workshops and networking meet-ups online, covering areas such as cash management in a crisis, leading your business through COVID-19 and advice for employers impacted by the crisis. Training programmes are free of charge and places can be booked online, through your Local Enterprise Office.

- For existing companies and potential start-ups that meet eligibility criteria (such as employing 10 or fewer people with the potential for growth and job creation), Local Enterprise Offices can also offer financial supports to help manage current market challenges such as Business Priming Grants, Business Expansion Grants, Feasibility Study Grants and Technical Assistance for Micro-Exporters Grant

I can assure the Deputy that I will continue to work with my colleagues across Government and with all stakeholders, to examine all such appropriate business supports to assist enterprises, including self-employed service providers, impacted by Covid-19.

The Deputy may wish to note the recent announcement by An Taoiseach and the Minister for Culture Heritage and the Gaeltacht of a total of €20 million to be allocated to the Arts Council bringing its allocation this year to €100 million. A further €5 million will be available for other measures, including securing the future of key cultural and museum spaces and facilities throughout Ireland, and the production of high-quality digital art and on-line performances. Further details are available on gov.ie.

Government will continue to explore funding potential for all enterprises as they work through the challenges facing them. I will keep the supports provided under review and continue to support businesses as they work through the challenges facing them.

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