Dáil Éireann Debate, Tuesday - 15 September 2020
158. Deputy Mattie McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment if supports have been considered for the self-employed and small businesses that do not qualify for the restart grant or the enterprise support grant; and if he will make a statement on the matter. [24011/20]
Amharc ar fhreagraThe development and promotion of schemes to support incomes is the responsibility of my colleague, the Minister for Social Protection, Community and Rural Development and the Islands Ms. Heather Humphreys, T.D.
While every effort is being made by this government to identify and develop supports that will benefit the widest spectrum of our communities, the primary objective of my Department in tackling the challenge of COVID-19 is to assist businesses to re-open in a safe manner thereby supporting employees to return to their work.
The Local Enterprise Offices operate nationwide as a ‘First Stop Shop’ for assistance and advice to people who wish to start, grow and recover their own business and I would encourage business owners to contact their Local Enterprise Offices to enquire about any assistance they can avail of, 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.
In response to the current health crisis, the LEOs have moved their training programmes, workshops and networking meet-ups online making them more accessible than ever. The LEOs' business mentors may be able to assist business owners, such as those mentioned, by identifying the appropriate assistance available to them such as:
- Micro-finance Ireland (MFI) COVID-19 Loans, if the impact of COVID-19 has resulted in a reduction of 15% or more in turnover or profit, and the business is unable to secure finance from banks and commercial lending providers, the MFI COVID-19 Business Loan may be an option to help the business. These loans can be used for working capital or changes required by the business to manage COVID-19. MFI offers support in the form of business loans from €5,000 to €25,000, with 0% interest and zero repayments for the first 6 months and the business will receive a government rebate on interest paid in the following 6 months. If you apply for a COVID-19 loan through your LEO, the interest rate after the first 6 Months will be at a reduced rate of 4.5% APR. MFI Loans typically have a 3-year loan term, with fixed repayments, no penalty for early repayment and no fees or charges.
- The Trading Online Voucher scheme (TOVs), an initiative under the Government's National Digital Strategy that is actively promoted by the Local Enterprise Office on behalf of the Department of Communications, Climate Action and Environment. The Scheme offers skills training, mentoring and financial support of up to €2,500 to help small and micro-businesses to develop their ecommerce capability. New flexibilities to the Scheme were introduced in April including reducing the requirement for co-funding from 50% to 10% and allowing businesses to apply for a second voucher of up to €2,500 where they have successfully utilised their first one.
On Monday the 14th of September I visited Kildare and announced a Scheme aimed at helping small businesses most acutely impacted by Covid-19 Restrictions. The Micro-Enterprise Assistance Fund will help businesses with fewer than 10 employees, which are ineligible for existing grants, with a grant of up to €1,000 to help them adapt and invest to rebuild their business. About 2,000 businesses nationwide will benefit and businesses can apply through their Local Enterprise Office.
