Stephen Donnelly (Wicklow, Fianna Fail)
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101. To ask the Minister for Jobs, Enterprise and Innovation if the Government has sought EU funding support for Irish enterprises exposed to Brexit; if so, the nature of the support; and if she will make a statement on the matter. [3509/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Brexit Loan Scheme announced during Budget 2018 will provide affordable working capital financing to eligible Irish businesses that are either currently impacted by Brexit, or which will be in the future. The Scheme will be delivered by the Strategic Banking Corporation of Ireland (SBCI) through commercial lenders to get much needed working capital into Irish businesses.

Support from the European Commission and EIB Group through its InnovFin counter Guarantee has enabled the €23 million exchequer funding (€14 million from my Department and €9 million from the Department of Agriculture, Food and the Marine) to be leveraged to provide a €300 million fund. The Brexit Loan Scheme will provide support for businesses to innovate or adapt their businesses to face the challenges of Brexit.

The Scheme will be open to businesses of up to 499 employees, which can also demonstrate that they are significantly exposed to the impact (or potential impact) of Brexit. They must be a viable business, doing business in Ireland, and they must have a business development strategy. The scheme will be open both to State Agency clients and those businesses that do not have any relationship with State Agencies.

My officials are working closely with the EIB group on the development of future schemes to support Irish businesses impacted by Brexit which would be structured to benefit from EIB supports.

Stephen Donnelly (Wicklow, Fianna Fail)
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102. To ask the Minister for Jobs, Enterprise and Innovation the EU level supports that have been put in place, such as changes to State aid rules and adaptation grants for Irish enterprises exposed to Brexit; and if she will make a statement on the matter. [3511/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Officials of my Department have had discussions with senior officials from DG Competition of the EU Commission to sensitise them to both the potential and the real difficulties encountered by Irish businesses as a result of the UK’s decision to leave the EU. Furthermore, in November 2017, the then Tánaiste met with Commissioner Vestager. An outcome from this meeting was the establishment of a Working Group comprising representatives from DG Comp, the Department of Business, Enterprise & Innovation, Enterprise Ireland and Department of Agriculture. The objective of the Group is to scope and design schemes to support enterprises impacted by Brexit in line with State Aid rules. The work of this Group has already commenced and it is due to have its third face to face meeting in February 2018. In between these meetings, there has been engagement on specific issues in order to continue to progress matters. Should issues arise that require an approach that does not fit within the existing State Aid rules, this will be raised as part of the Working Group discussions.

As one part of a suite of measures to mitigate against the effects of Brexit; a Rescue & Restructuring (R&R) Scheme notified to the Commission was approved in late November 2017. Under the €10 million scheme which will run until 2020, Enterprise Ireland can provide restructuring support to businesses in financial difficulties. This scheme has been put in place as it is considered prudent to have contingency measures in place so that we can respond swiftly to changing circumstances as necessary. However, I do not expect that there will be a need for the State to provide rescue/restructuring aid to companies.

The Brexit Loan Scheme will provide affordable working capital financing to eligible businesses that are either currently impacted by Brexit, or will be in the future. Support from the European Commission and EIB Group through its InnovFin Loan counter guarantee means the €23 million exchequer funding (€14 million from my Department and €9 million from the Department of Agriculture, Food and the Marine) can be leveraged to provide a €300 million fund. The Brexit Loan Scheme will provide support for businesses to innovate or adapt to face the challenges of Brexit. The Scheme will be open to businesses of up to 499 employees, which can demonstrate that they are significantly exposed to the impact (or potential impact) of Brexit. They must be a viable business, doing business in Ireland, and they must have a business development strategy demonstrating that they plan to innovate or adapt in response to Brexit.