Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

106. To ask the Minister for Jobs, Enterprise and Innovation her plans to introduce a scheme similar to the enterprise stabilisation fund that was introduced in 2009 to assist businesses facing difficulties due to Brexit; and if she will make a statement on the matter. [13511/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Department has undertaken significant research and consultation to better understand the challenges posed by Brexit for businesses in Ireland, and based on this work has designed a suite of supports for impacted businesses. I will shortly launch a €300 million Brexit Loan Scheme. This scheme is designed to assist eligible businesses exposed to negative impacts resulting from Brexit in adjusting, changing, or adapting to mitigate these effects. The finance offered under the scheme will be easier to access, more competitively priced, and at more favourable terms than current offerings.

A Technical Working Group on State Aid comprising representatives from DG Competition, DBEI, EI and DAFM was established in November 2018. The objective of the Group is to scope and design schemes to support enterprises impacted by Brexit in line with current applicable State Aid rules. 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.

A notified Rescue and Restructuring (R&R) scheme was approved by the Commission in late November 2017. 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. Under the scheme, which will run until 2020, Enterprise Ireland can provide restructuring support to SMEs in severe financial difficulties.

As part of the deliberations of the Working Group on State Aid, it was agreed that my officials should extend the R&R scheme to include temporary restructuring support for those SMEs who experience acute liquidity needs. This extension, which has been pre-notified to the Commission, will be a welcome addition to our suite of supports for businesses impacted by Brexit.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

107. To ask the Minister for Jobs, Enterprise and Innovation the schemes and funding that are available to assist small and medium-sized enterprises which face particular difficulties due to Brexit; and if she will make a statement on the matter. [13512/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Brexit Loan Scheme announced during Budget 2018 will be launched shortly. The scheme will be delivered by the Strategic Banking Corporation of Ireland (SBCI) through finance providers to get much needed working capital into Irish businesses.

The €300 million fund for the scheme is underpinned by a counter-guarantee from the European Commission and EIB Group through its InnovFin Loan Guarantee Scheme. Under the terms of the InnovFin scheme, the Brexit Loan Scheme provides support for businesses to innovate or adapt their businesses to weather the period of uncertainty around Brexit.

The scheme will be open to eligible businesses of up to 499 employees that 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, have a business development strategy and meet the scheme criteria. The scheme will be open both to State Agency clients and those businesses that do not have any relationship with State Agencies.

Further, my department is exploring the development of a new Business Finance Advisory Hub. This hub will assist SMEs in making informed funding and investment decisions. The advisory hub will serve to ensure that SMEs are well informed of their funding and financing options, and will strengthen their financial planning skills.

My officials are also working with the Department of Agriculture, Food and the Marine, the Department of Finance, the SBCI and EI in examining policy proposals for a new longer-term Business Investment Loan Scheme to support businesses to invest strategically for a post-Brexit environment.