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Covid-19 Pandemic Supports

Dáil Éireann Debate, Tuesday - 8 September 2020

Tuesday, 8 September 2020

Ceisteanna (83)

Niall Collins

Ceist:

83. Deputy Niall Collins asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will address issues raised in correspondence by a person (details supplied); and if he will make a statement on the matter. [21551/20]

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Freagraí scríofa

The Restart Grant Plus is aimed at helping small and medium-sized businesses with the costs associated with reopening and re-employing workers following COVID-19 closures. The scheme is designed to help with the cost of reopening or adapting business premises so that normal business can resume.

Tradespersons and service providers that operate on a mobile basis or that continue to work remotely have been better placed to continue to trade and many may not have incurred the same levels of losses, of ongoing overheads or reopening costs that a fixed premises business will have. It is in this context that the Restart Grant Plus is available to businesses operating commercially from a rateable premises within the Local Authorities rates system. All other businesses with the exception of non-rate paying B&Bs are excluded from the Restart Grant Plus scheme.

However, the Restart Grant Plus is just one part of the wider suite of schemes available to firms of all sizes, which includes low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.

My colleague Heather Humphreys T.D., Minister of Social Protection, Community and Rural Development and the Islands announced on 14 August 2020 that the Department’s Enterprise Support Grant is now 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 COVID-19 Business Restart Grant or other similar business reopening grants.

Microfinance Ireland provides loans on favourable terms to micro-enterprises (employing less than 10) that cannot access finance from other finance providers. Loan terms typically up to 3 years, with no fees or charges and fixed repayments with no penalty for early repayment. The MFI COVID-19 loans offer loans from €5,000 to €25,000, with the equivalent of no interest for the first year and interest rates of 4.5% APR where the applicant is working with their Local Enterprise Office.

The new COVID-19 Credit Guarantee Scheme offers an 80% Government guarantee to participating banks to provide up to €2 billion in low-interest loans to eligible SMEs for up to six years. Loans provided under the scheme range from €10,000 to €1 million. Interest rates will vary depending on the loan, however they will be lower than would otherwise be available in the market. To apply for the scheme, businesses can contact a participating finance provider directly.

All COVID-19 Business Schemes are under constant review in terms of the evolving situation and will be adapted as circumstances dictate. In that regard, I can assure the Deputy that I will continue to work with my colleagues across Government and all stakeholders to examine how best to further assist businesses impacted by Covid-19 as part of the forthcoming National Economic Plan.

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