Robert Troy
Ceist:306. Deputy Robert Troy asked the Minister for Business, Enterprise and Innovation her views on a proposal by an organisation (details supplied) to mitigate a hard Brexit. [41665/19]
Amharc ar fhreagraTuesday, 15 October 2019
Ceisteanna (306)
Freagraí scríofa
The Brexit Loan Scheme provides affordable working capital to eligible businesses with up to 499 employees that are or will be Brexit-impacted and which meet the scheme criteria. The scheme leverages €23 million exchequer funding to provide a fund of up to €300 million over its lifetime.
Under the first stage of the scheme’s application process, businesses apply to the Strategic Banking Corporation of Ireland (SBCI) to confirm their eligibility for the scheme. Businesses can use guidelines provided on the SBCI website to determine if they are eligible, and if so, to complete the eligibility form. As part of the process, businesses submit a business plan, demonstrating the means by which they intend to innovate, change or adapt to meet their Brexit challenges. The SBCI assesses the applications and successful applicants receive an eligibility reference number.
The scheme is offered by the Government of Ireland through my Department and the Department of Agriculture, Food and the Marine and is operated by the SBCI. It is supported by the European Investment Bank (EIB) Group’s InnovFin SME Guarantee Facility. In order to qualify for eligibility under the scheme, businesses need only satisfy one of eleven InnovFin criteria. These criteria are established under the InnovFin facility itself, and were not put in place by Government.
However, the innovation activities supported by the scheme are not limited to technological innovation. Rather, recognised innovations are relatively broad ranging and supported activities include development of new products/services and entry to new markets, as well as changes to production methods and supply chains. The hurdle rate as to whether an activity is innovative is not onerous, and, as at 25 September 2019, just 15 applicants to the scheme have failed to meet the innovation criterion. I am aware that many firms that may met the eligibility criteria and have received approval from SBCI have not yet proceeded to sanction with their bank, and as the SBCI approval previously was valid for only four months, I have agreed with SBCI that they will extend the validity period for their eligibility to six months so as to reduce the administrative requirement on firms to reapply.
Full information on the innovation criteria is available through the Brexit Loan Scheme Information Pack, available through my Department’s website. Some case studies illustrating what qualifies as innovation are included in the information pack. I have also attached a copy to this response.