Written answers

Thursday, 20 January 2011

Department of Enterprise, Trade and Innovation

Enterprise Support Services

5:00 am

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 212: To ask the Minister for Enterprise, Trade and Innovation if there have been discussions to address the difficulty encountered by those who wish to access the EU Globalisation Fund to set up small businesses but who cannot get matching funds to take up grants offered by city or county enterprise boards; if she will arrange for access to loans for this purpose to be made available or if the requirement for matching funds can be dispensed with; and if she will make a statement on the matter. [3159/11]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The range of financial assistance available from the CEBs to eligible micro-enterprises includes Priming Grants, Business Expansion and Development Grants and Feasibility Grants. Priming Grants and Business Expansion and Development Grants are the primary grants utilised by the majority of eligible micro-enterprises as these grants cover a broad range of legitimate business costs associated with starting a business and with developing and growing that business. Both of these grants allow for the payment of up to 50% of the investment or €150,000 whichever is the lesser. The purpose behind the application of a grant aid limit is to ensure that the promoter of the business assumes a reasonable part of the risk in establishing and running the business These levels have been approved by the European Union.

It is considered inappropriate that funding levels for CEB supports should be increased above the current levels that apply under normal CEB eligibility criteria in respect of clients of an Enterprise Board who are accessing funds available under a European Globalisation Fund facility. I would point out that there has already been a significant loosening of normal CEB eligibility criteria in respect of the current EGF facilities in operation i.e. Dell, Waterford Crystal and SR Technics, such that grant assistance for locally traded services is permitted. There is a concern that this could have deadweight and displacement implications for some existing businesses in the locations concerned and it is important that a balance is maintained. I am satisfied that the current eligibility criteria are appropriate.

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