Dáil Éireann Debate, Wednesday - 15 July 2020
48. Deputy John Lahart asked the Tánaiste and Minister for Business, Enterprise and Innovation his plans to assist companies that have been closed for the past number of months by way of cash injection to meet their deferred debts and deferred payments; and if he will make a statement on the matter. [16146/20]
View answerAs stated in the Programme for Government, we will bring forward a Jobs Stimulus this month to boost our economy and help restore employment. This July Stimulus will extend, enhance and add to the existing measures totalling €12 billion in supports for COVID-19 impacted businesses already announced.
The Restart Grant was launched on 22 May 2020 and is a critically important tool to support small businesses to reopen their doors and get back on their feet. Grant payments available range from a minimum of €2,000 up to €10,000 available. The scheme was devised in recognition of the fact that micro and small businesses were and are particularly vulnerable to the economic effects of COVID-19.
Using funding allocated by my Department to Enterprise Ireland for the Scheme, the Local Authorities are the granting authority in each of their respective areas. The Local Authorities make grant payments to the bank account of qualifying businesses, in accordance with the scheme.
The Restart Grant is, however, just one part of a wider assistance package for business and 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.
Currently, any business (Sole Trader, Partnership or Limited Company) with less than 10 full time employees and annual turnover of up to €2m may apply to Microfinance Ireland for funding from €5,000 – €50,000 where the business is not in a position to avail of finance from Banks and other commercial lending providers. The loan incurs 0% interest for the first six months and Zero repayments. Thereafter a reduced interest rate of 4.5% APR applies to loans applied for through the Local Enterprise Office.
All COVID-19 Business Schemes are under constant review in terms of the evolving situation and will be adapted as circumstances dictate, including adaptations to the phased opening of our economy.
In that regard, while the Restart Grant scheme has been broadly welcomed by business owners who benefited from it, I am aware of certain exclusions as the application and assessment processes have been rolled out. In line with an undertaking given in the Programme for Government, my Department is carrying out a general review of the Restart Grant. This will be completed shortly and form an important input to Government's considerations for the forthcoming July Stimulus package.
I can assure the Deputy that I will continue to work with my colleagues across Government and all stakeholders to examine how best to further assist businesses impacted by COVID-19.
Full details on all COVID-19 measures for business are available at: https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
