Dáil Éireann Debate, Wednesday - 3 June 2020
437. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation if financial supports are being made available to small business impacted by Covid-19 which are unable to avail of the restart grant in view of the fact they are not currently on a local authority commercial rates payment system. [8687/20]
Amharc ar fhreagraFollowing publication of the Roadmap to reopen our economy on May 2nd, the Government also announced a series of additional measures to further support small, medium and larger business that are negatively impacted by Covid-19.
The Restart Grant support is part of the wider €12bn package of supports for firms of all sizes, which includes grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.
If a business is not eligible for the Restart Grant there are other supports that it may be eligible to apply for. They aim to help businesses to restart, reconnect and rehire staff who have been laid off or furloughed and include:
- Trading Online Vouchers from LEOs
- Loans up to €50k from Microfinance Ireland
- 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
- a three month commercial rates waiver for impacted businesses
- a commitment to local authorities to make up the rates shortfall, so that local authorities can continue to provide full services to the public
I recently announced the reduction in the interest rate on Microfinance Ireland loans from 7.5% to 4.5% on loans of up to €50,000, with no interest payments for the first 6 months. This reduced rate will be available to all micro-enterprises from retail and tourism to software and transport with less than 10 employees, where the application is made through the Local Enterprise Offices
I understand the concerns relating to the Restart Grant from businesses that do not operate from commercial premises. However, tradespersons and service providers that operate on a mobile basis or that could continue to work remotely have been better placed to continue to trade and many don’t have the same levels of losses, of ongoing overheads or reopening costs that a fixed premises business will have. Within the funding available, the priority has been to support those who have suffered most, including closure of the business, but who will still have incurred ongoing costs.
The Restart Grant eligibility criteria will be subject to ongoing review and we will continue to take on board issues as they arise.
