Dáil Éireann Debate, Wednesday - 13 May 2020
440. Deputy Robert Troy asked the Minister for Business, Enterprise and Innovation the impact on businesses especially SMEs in view of Covid-19; and the supports which will be put in place for small businesses to deal with such a scenario. [4379/20]
Amharc ar fhreagraI announced on April 8 a major expansion of supports for all businesses impacted by COVID-19.
The package is now worth €1 billion in liquidity measures including a new €180m Sustaining Enterprise Fund for firms in the manufacturing and international services sectors. Free mentoring and online training are also available for all SMEs. 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.
In that regard, Government will continue to explore funding potential for all enterprises including micro-enterprises as they work through the challenges facing them, including through any mechanisms allowable through the EU’s state aid framework.
There are several schemes available that can assist businesses in meeting their short-term working capital and liquidity requirements including:
- A €200m Strategic Banking Corporation of Ireland (SBCI) Working Capital scheme for eligible businesses impacted by COVID-19. Loans of up to €1.5m will be available at reduced rates, with up to the first €500,000 unsecured. Applications can be made through the SBCI website. Following my further announcement on April 8 this Scheme is now being expanded to make available an additional €250 million in lending, which will bring the total amount of lending available under this scheme to €450 million.
- The maximum loan available from MicroFinance Ireland (MFI) will be increased from €25,000 to €50,000 as an immediate measure to deal specifically with the exceptional circumstances micro-enterprises – (sole traders and firms with up to 9 employees) are facing. Applications can be made through the MFI website or through your Local Enterprise Office (LEO);
- The Credit Guarantee Scheme will be available to COVID-19 impacted firms through the Pillar Banks. Loans of up to €1m will be available at terms of up to 7 years. On 2 May, I announced a €2 billion COVID-19 Credit Guarantee Scheme to support lending to SMEs for terms ranging from 3 months to 6 years, which will be below market interest rates. This scheme will include primary producers.
- A €200m Package for Enterprise Supports including a Rescue and Restructuring Scheme available through Enterprise Ireland (EI) for vulnerable but viable firms that need to restructure or transform their business.
- A New €2,500 Business Continuity Voucher is available through Local Enterprise Offices and is designed for businesses across every sector that employ up to 50 people. It can be used by companies to develop short-term and long-term strategies to respond to the Covid-19 pandemic. These measures are in addition to the €150m of funding capacity in the Government’s Credit Guarantee Scheme. For Microenterprises (under 10 employees):
-The €2,500 Trading Online Voucher Scheme for microenterprises is being expanded - an additional €3.3m is being provided to the scheme bringing the total available to €5.6m. The scheme is also being made more flexible - allowing businesses to apply for a second voucher of up to €2,500 where they have successfully utilised their first one; and allowing subscriptions to low-cost online retailing platform solutions to quickly establish a retailing presence online.
- €180m Sustaining Enterprise Fund, this is specifically aimed at all firms with 10 or more employees in the manufacturing and international services sectors impacted by COVID-19 that are vulnerable but viable. The Fund will be operated by Enterprise Ireland, providing repayable advances of up to €800,000 as agreed with the EU under new State Aid rules and, together with leveraged lending from the financial markets, should see up to €500m of additional investment in vulnerable but viable firms. These grants will only be repayable if and when a business returns to financial good health.
- Business Financial Planning Grant from Enterprise Ireland to the value of €5,000 to assist companies to develop a Business Sustainment Plan and to engage the services of an approved Financial Consultant.
- A new €2,500 LEAN Business Improvement Grant from Enterprise Ireland and IDA Ireland to help companies quickly access expertise to review and optimise operations at a time of crisis and identify the key measures needed to ensure continued viability.
- A new €2m Online Retail Scheme from Enterprise Ireland will be open to retailers employing over 10 people. The objective of the Scheme is to support companies in the indigenous retail sector with a pre-existing online presence to respond to both the domestic and international consumer demand for a competitive online offer. Grants ranging from €10,000 to €40,000 will be awarded under the competitive scheme.
My Department and the Department of Employment Affairs & Social Protection (DEASP) will provide a joint First Responder support service through the Intreo Offices, Enterprise Ireland and IDA Ireland, in all regions, to provide custom-made supports for impacted businesses to buy time to work through short-term disruptions and to assist in avoiding mass lay-offs.
Firms that need to reduce hours or days worked can avail of the DEASP Short Term Work Support by contacting their local Intreo Office. The Workplace Relations Commission (WRC), working in conjunction with the DEASP, are coordinating information for employees and employers on their rights and responsibilities in the case of employees being absent from work due to isolation and/or infection.
EI are providing advice, business continuity tools and webinars for businesses, and along with the LEOs will activate advisory clinics and mentoring support for affected firms. A Finance in Focus grant of €7,200 will be available to EI and Údarás na Gaeltachta clients who wish to access consultancy support to undertake immediate finance reviews.
The full range of EI, IDA Ireland, LEO and Údarás na Gaeltachta grant supports will be available to firms to help with strategies to innovate, diversify markets and supply chains and to improve competitiveness. In addition, LEOs in every county will be providing vouchers from €2,500 up to €10,000 (with 50:50 match funding) to support business continuity preparedness, innovation and productivity.
A Checklist for Business Continuity Planning, produced in consultation with the HSE, with specific references to COVID-19 is available on my Department’s website. The continuity planning checklist lays out some of the key risks to the continuity of business activities and the preparatory actions that can be taken by businesses to mitigate these.
The Deputy will also be aware of the recently announced €2.4 billion package of reforms for sick pay, illness benefit and supplementary benefit that is designed to ensure that employees and the self-employed can abide by medical advice to self-isolate where appropriate.
On Saturday 2 May last, I also announced a further suite of measures to support small, medium and larger business that are negatively impacted by Covid-19 with Minister Paschal Donohoe, T.D., Minister for Finance and Public Expenditure and Reform and Minister Eoghan Murphy, T.D., Minister for Housing, Planning and Local Government. This package of support followed the publication of the Government’s Roadmap for Reopening Society & Business, which sets out a five-stage plan to ease the Covid-19 restrictions and reopen Ireland’s economy and society. The new measures we announced included:
- A €10,000 restart grant for micro and small businesses based on a rates/waiver rebate from 2019;
- A three-month commercial rates waiver for impacted businesses;
- A €2 billion Pandemic Stabilisation and Recovery Fund within the Ireland Strategic Investment Fund (ISIF), which will make capital available to medium and large enterprises on commercial terms;
- A €2 billion COVID-19 Credit Guarantee Scheme to support lending to SMEs for terms ranging from 3 months to 6 years, which will be below market interest rates;
- The ‘warehousing’ of tax liabilities for a period of twelve months after recommencement of trading during which time there will be no debt enforcement action taken by Revenue and no interest charge accruing in respect of the warehoused debt; and,
A commitment to local authorities to make up the rates shortfall, so that local authorities can continue provide full services to the public.
My Department will continue to monitor the situation and engage across Government with the representative bodies, Enterprise Forum, the banking system and other stakeholders, with a view to ensuring an appropriate response that will protect and support Irish businesses.
