Dáil Éireann Debate, Wednesday - 3 June 2020
422. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation the rules for the current working capital scheme; the reason for the innovation test; if she is considering changing same; if so, if it will require primary legislation for the change; and if she will make a statement on the matter. [8292/20]
Amharc ar fhreagraSince the onset of the Covid-19 pandemic, Government has worked rapidly to ensure that appropriate supports are in place to help businesses address issues arising from the outbreak or the measures put in place to mitigate the spread of Covid-19.
The SBCI Covid-19 Working Capital Scheme was announced on 11 March and opened for eligibility applications on 23 March. This scheme is offered in cooperation with the Department of Agriculture, Food and the Marine. The scheme is operated by the SBCI and is supported by the European Investment Fund's InnovFin SME Guarantee facility.
It currently makes available a fund of up to €200m to eligible businesses that have been negatively affected by impacts arising from the outbreak of Covid-19 to enable those businesses to innovate, change or adapt in response to the current business environment. Following a 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 scheme is open to eligible SMEs and small mid-caps (businesses of up to 499 employees) negatively impacted by Covid-19. Loans under the scheme range from €25,000 to €1.5m and are for periods of up to three years. The maximum interest rate under the scheme is 4% and loans of up to €500,000 are available unsecured.
More detailed information on the rules of the scheme are available through the SBCI’s Covid-19 Working Capital Scheme webpage.
As is noted above, the scheme is supported by the InnovFin SME Guarantee facility; the innovation criteria under the scheme are a prerequisite of this guarantee facility. However, I would emphasise that the innovation requirement under the scheme is not an onerous one. As of the most recent reports on the scheme's uptake, less than 0.5% of applicants for eligibility under the scheme have been deemed ineligible.
I am conscious that some applicants may find the innovation criteria intimidating, and so officials of my Department and the SBCI are engaging with the EIF on the potential to simplify these requirements. I would also note that there is support in place to help businesses through their application. The SBCI maintains a phone and email helpdesk that can assist businesses as they apply, including with any questions around the innovation criteria.
