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Covid-19 Pandemic Supports

Dáil Éireann Debate, Wednesday - 24 March 2021

Wednesday, 24 March 2021

Questions (466)

Martin Browne

Question:

466. Deputy Martin Browne asked the Minister for Finance the supports in place to reimburse businesses for stock they have had to dispose of as a result of stock going out of date or for other reasons that relate to the closure of their premises due to Covid-19 restrictions; and if he will make a statement on the matter. [14968/21]

View answer

Written answers

I wish to advise the Deputy that I do not have responsibility for this matter. However, I can confirm that:  

- There has been over €630 million in lending approved to 5,260 businesses across State-backed loan guarantee schemes.

- Take-up of these schemes has varied. There has been high demand for the Future Growth Loan Scheme (FGLS) and working with the European Investment Fund, the Future Growth Loan Scheme was expanded in the 2020 July Jobs Stimulus and makes up to €800m in lending available to eligible businesses to support long-term, strategic investment, including in response to COVID-19. I understand that a number of the participating banks (AIB, Bank of Ireland and Ulster Bank) have currently suspended new loan applications under the FGLS while they process a significant pipeline of existing applications.

- The SBCI COVID-19 Working Capital Scheme makes available working capital loans to help businesses to innovate, change or adapt in response to the pandemic. These innovations may include adjustments to ensure that a business can continue to operate safely.

- The COVID-19 Credit Guarantee Scheme (CGS) was launched by Government on the 7th September 2020 and is the biggest ever state-backed loan guarantee in Ireland. Its focus is to provide additional liquidity to businesses in a wide range of sectors. This has resulted in an increased diversification in loan products available to Irish businesses and greater geographical reach for the COVID-19 CGS.

- While take up of the COVID-19 CGS is less than was foreseen, this is due to the significant supports that Government has ensured are available for businesses during COVID-19 restrictions, including the EWSS, CRSS, tax warehousing and the commercial rates waiver.

- Low demand for credit is a consistent feature of the Irish SME environment. These Government supports, together with general forbearance from the financial system, including payment breaks, have meant that Irish businesses have not looked to access credit during COVID-19 restrictions, including through Government backed loans schemes, at greater levels then the pre-COVID period.

- It is envisaged that SME demand for credit and the use of state backed loans will increase as COVID-19 restrictions are lifted and the economy and businesses are able to reopen.

It should be noted that whether a business can make a successful insurance claim in relation to (the cost of) stock disposed of or wasted because of closure due to COVID-19 will depend on the specifics of their individual policy. While business interruption is generally a feature of standard business insurance policies, the terms and conditions for the policies written by insurance companies will vary and also depend on how insurers price the risk underlying those policies. As the Deputy will be aware, I cannot direct or require that insurers cover claims resulting from infectious diseases such as COVID-19.  

Loan, grants and schemes for Business

 

SBCI - COVID-19 Credit Guarantee Scheme

Facilitates €2bn in lending including for term loans, working capital loans and overdrafts with loans of up to €250,000   available unsecured. Backed by an 80% government guarantee.

To 4 March: 5,129 loan applications have been made amounting to almost €346m.

3,470 loans have been drawn down by businesses for loans totalling €207.04 million.

SBCI - COVID-19 Working Capital Scheme

Supports loans from €25,000 up to €1.5 million (first €500,000 unsecured) with a maximum interest rate of 4%.

To 12 March: 1,007 loans were sanctioned to a value of €136.47 million.

SBCI - Future Growth Loan Scheme

€800m of loans available for terms of 7-10 years. Loans from €25,000 to €3million. This scheme is available to   eligible businesses in Ireland, including those in the primary agriculture   and seafood sectors, to support strategic long-term investment.

To 12 March: 3,228 loans were approved to a value of €668.42 million.

Microfinance Ireland - COVID-19 Business Loan

Loans of up to €25,000 are available for micro firms with zero repayments and zero interest for the first 6   months and the equivalent of an additional 6 months interest-free   subject to certain terms and conditions.

To 12 March: 274 loans approved to a value of €5.16 million.

Enterprise Ireland - Sustaining Enterprise Fund

Viable firms in the manufacturing and internationally traded services sectors who have been negatively impacted by COVID-19. Between €100,000 and €800,000 available and the fund includes a 50%   non-repayable grant element, up to a limit of €200,000.

To 12 March: 413 loans approved with a value of €147.89 million.

ISIF - Pandemic Stabilisation and Recovery Fund

€2 billion fund will make capital available to medium and large enterprises on commercial terms.

N/A 

Small Business Assistance Scheme

€60 million scheme with grants of up to €8,000. Available to companies with a minimum turnover of €50,000 not eligible for the Revenue scheme CRSS, Fáilte Ireland Business Continuity  Scheme or the Department of Tourism, Culture, Arts, Gaeltacht, Sport and   Media’s Live Performance Support.

Scheme opened 11 March.

Tourism Business Continuity Scheme

€55m fund to support those tourism businesses that were not eligible for the CRSS payment or previous Fáilte Ireland continuity grant schemes.

 N/A

COVID Supports Data Dashboard – Week ending 12 March 2021

Pandemic Unemployment Payment (PUP)

Week Ending 

Total PUP Claims

Weekly change

4 week change

12 March

464,860

-3,987

-16,471

Employment Wage Subsidy Scheme (EWSS)

Date

Employer registrations

Weekly

  change

4 week change

11 March

49,000[1]

-

+700[2]

EWSS Claims

 

Employer Claims

Employees

Direct Subsidy

PRSI Foregone

Total Value

February

35,700

311,600

€389.8m

€60.3m

€450.1m

Monthly change[3]

-1,100

-41,100

- €15.9m

- €1.8m

- €17.7m

Total to Date

47,900

539,900

€2,313m

€390m

€2,703m

 Covid Restriction Support Scheme (CRSS)

Date

Business registrations

Premises Covered

11 March

21,200

24,800

Weekly change

+ 300

+ 400

 Total payment processed to date: €370.5m

 Stay and Spend Incentive (SASI)

Date

Service provider registrations

Weekly change

4 week change

11 March

3,144

+ 4

+7

Date

Total no of receipts uploaded

Total Receipts value 

Total value of credit claimable

11 March

56,953

€9,361,197

€1,872,239

Weekly Change

+ 937

+ €153,953

+ €30,790

[1] Including 1,600 re-registrations and excluding 2,900 employers who registered then subsequently cancelled their registrations.

[2] Compared with 11 February EWSS statistics

[3] Compared with January 2021

The Covid Restrictions Support Scheme (CRSS) was announced in the Budget on 13 October 2020. The details are set out in the Finance Act 2020 and guidelines on the operation of the scheme, including the eligibility criteria, are available on the Revenue website.

The support is available to companies and self-employed individuals who carry on a trade or trading activities from a business premises located in a region subject to restrictions, introduced in line with the Living with Covid-19 Plan, with the result that the business is required to prohibit or considerably restrict customers from accessing their business premises. Generally, this refers to Covid restrictions at Level 3, 4 or 5 of the Government’s Plan for Living with Covid-19 but certain businesses may qualify for the support where lower levels of restrictions are in operation.

The CRSS applies to businesses carrying on trading activities from a business premises located in a region subject to restrictions, which requires the business to prohibit or considerably restrict customers from accessing their business premises and as a result, is operating at less than 25% of turnover in 2019.

The CRSS is an additional measure for businesses in a region subject to significant Covid-19 restrictions. Businesses who do not qualify under this scheme may be entitled to support under various measures put in place by Government, including existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). They may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable.

The purpose of the CRSS is to provide additional support to the businesses who have had to close temporarily or significantly restrict access to their premises as a direct result of public health Regulations. 

In addition, you may be aware of the Tourism Business Continuity scheme, a €55m strategic funding scheme announced as part of Budget 2021 to support tourism businesses which was launched recently. Further details of the scheme are available on the Fáilte Ireland website at  https://www.failteireland.ie/Identify-Available-Funding/Tourism-Business-Continuity-Scheme.aspx

The first phase of the Tourism Business Continuity Scheme is now open for applications from businesses in the following categories who meet the eligibility criteria:

- Outdoor activity providers

- Tourism golf courses

- Hop-on Hop-off bus tours

- Cruise hire companies

- Boat tours operators

- Visitor attractions not eligible for CRSS

- Caravan and camping / outdoor accommodation

In this regard, it may be noted that the Tánaiste and Minister for Enterprise, Trade and Employment recently announced that the Small Business Assistance Scheme for Covid (SBAC) is open for applications through Local Authorities. It is available to companies, self-employed, sole traders or partnerships with a minimum turnover of €50,000 and not eligible for the CRSS, Fáilte Ireland Business Continuity Scheme or the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media’s Live Performance Support. Further details are available at https://www.gov.ie/en/press-release/16d20-tanaiste-opens-applications-for-phase-1-of-8000-grant-under-new-small-business-assistance-scheme-for-covid-sbasc/

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