Dáil Éireann Debate, Tuesday - 7 July 2020
24. Deputy Fergus O'Dowd asked the Tánaiste and Minister for Business, Enterprise and Innovation if he will consider a proposal by a person (details supplied) on businesses which are ineligible for grants but may play a key role in the restart of local SMEs going forward; and if he will make a statement on the matter. [14014/20]
Amharc ar fhreagraThe Restart Grant is just one part of a wider assistance package for business and for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs. Within the funding available, the priority has been to assist those who have suffered most, including closure of the business, but whom will still have incurred ongoing costs.
As the publisher referred to seems to be a sole trader, then perhaps the Government’s Enterprise Support Grant announced on 25th June may be more suitable to help reinvigorate this business. The Enterprise Support Grant will be made available to assist self-employed recipients who are exiting the Pandemic Unemployment Payment (PUP) scheme with a once-off grant of up to €1,000 to re-start their business. The grant will be payable to self-employed micro enterprises which employ fewer than 10 people, have an annual turnover of less than €1 million and are not eligible for support from the COVID19 Business Restart Grant or other similar business reopening grants.Many businesses are reluctant to take on debt at this uncertain time, but any business (Sole Trader, Partnership or Limited Company) with less than 10 full time employees and annual turnover of up to €2m may apply to Microfinance Ireland for funding from €5,000 – €50,000 where the business is not in a position to avail of finance from Banks and other commercial lending providers. The loan incurs 0% interest for the first six months and no repayments. Thereafter a reduced interest rate of 4.5% APR applies to loans applied for through the Local Enterprise Office and this may provide them with the necessary capital injection to help them recover, while the surrounding businesses that provide the bulk of their revenue continue to find their feet. All Covid19 business Schemes are under constant review in terms of the evolving situation and will be adapted as circumstances dictate, including adaptations to the phased opening of our economy. Government will continue to explore funding potential for all enterprises as they work through the challenges facing them, including through any mechanisms allowable under the EU’s state aid framework.
Any SME should speak to representatives from their Local Enterprise Office to discuss what assistance and guidance they can offer, noting that the Local Enterprise Offices do not provide direct grant-aid to areas such as retail, personal services, local professional services, construction/local building services, as it may give rise to the displacement of existing businesses.
Full details on all COVID19 measures for business are available at: https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/
