Imelda Munster (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

476. To ask the Minister for Jobs, Enterprise and Innovation her plans to increase the funding available under the restart grant for small businesses in view of the scale of the financial difficulties facing SMEs; and if she will make a statement on the matter. [8140/20]

Imelda Munster (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

477. To ask the Minister for Jobs, Enterprise and Innovation if alternative methods of calculating the restart grant funding needs of businesses will be considered; her views on whether refunding 2019 rates bills does not reflect the restart funding needs of a given business; and if she will make a statement on the matter. [8141/20]

Imelda Munster (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

478. To ask the Minister for Jobs, Enterprise and Innovation the way in which microbusinesses that do not pay rates can access restart grant funding. [8142/20]

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

I propose to take Questions Nos. 476 to 478, inclusive, together.

On Friday May 15^th, 2020 the Government announced details of the new €250m Restart Grant providing direct grant aid to micro and small businesses to help them with the costs associated with reopening and re-employing workers following COVID-19 closures; with the grant being administered by local authorities from Friday, May 22^nd, 2020.

Eligible businesses who have stayed open throughout the crisis, as well as those who are reopening under Phase 1 (from 18^thMay) and Phase 2 (8^thJune) of the Government’s Roadmap for Reopening Society and Business, are encouraged to apply first for the Restart Grant. These applications will be prioritised for payment by the local authorities.

To avail of the Restart Grant, applicants must be a commercial business and be in the Local Authorities Commercial Rates Payment System and:

1. have an annual turnover of less than €5m and employ between 1 to 50 people;

2. have suffered a projected 25%+ loss in turnover to end June 2020;

3. commit to remain open or to reopen if it was closed;

4. declare the intention to retain employees that are on The Temporary Wage Subsidy Scheme.

Subject to the qualifying criteria outlined above, any business that has a commercially rateable premises including those businesses with outstanding rates bills are eligible to make an application if they meet the criteria. The grant will be the amount of the rates demand in respect of calendar year 2019 only, subject to a minimum of €2,000 and a maximum of €10,000.

If a company is currently in a rateable premise but was not rate-assessed in 2019 it is still eligible to apply. The local authority can pay the grant based on an estimate of what the rates demand for 2019 would have been.

The grant will be the amount of rates demand in respect of calendar year 2019 only, subject to a minimum of €2,000 and a maximum of €10,000.

Within the funding available, the priority has been to support those who have suffered most, including closure of the business, but who will still have incurred ongoing costs.

The grant can be used to defray ongoing fixed costs, for replenishing stock and for measures needed to ensure employee and customer safety.

Businesses who are not in a rateable premises are not eligible.

Non-commercial organisations such as community and sporting premises are not eligible. Businesses that do not operate from rateable premises (tradesmen, service providers, etc) are not eligible.

I understand the concerns relating to business that do not operate from commercial premises.

However, tradespersons and service providers that operate on a mobile basis or that could continue to work remotely have been better placed to continue to trade and many don’t have the same levels of losses, of ongoing overheads or reopening costs that a fixed premises business will have. Within the funding available, the priority has been to support those who have suffered most, including closure of the business, but who will still have incurred ongoing costs.

We are also focussed on businesses that have continued to employ people, with the aid of the Temporary Wage Support Scheme, so that those jobs will be retained as soon as the business re-opens.

This direct grant support is part of the wider €12bn package of supports for firms of all sizes, which includes the wage subsidy scheme, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.

Applications for the Restart Grant can be made online directly to local authorities since Friday May 22^nd, 2020 and further information can be obtained by contacting the Business Support Unit of the relevant local authority.

We will monitor the Restart Grant as it is rolled out and continue to take on board issues as they arise.

Imelda Munster (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

479. To ask the Minister for Jobs, Enterprise and Innovation if the credit guarantee scheme will be amended to ensure that loans are available to SMEs to address Covid-19-related financial difficulties. [8143/20]

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

Since the Covid-19 crisis began, Government has worked to put in place a suite of supports to ensure appropriate financing is available to businesses that have been impacted by the outbreak or by the restrictions that have been put in place to mitigate the spread of the disease.

As announced on Saturday May 2nd, Government has agreed a new €2 billion Covid-19 Credit Guarantee Scheme as a further development of the existing Credit Guarantee Scheme already available from AIB, BOI and Ulster Bank. This Scheme forms a major component of the Government’s strategy to aid SMEs in these difficult times by providing critical support to ensure businesses are facilitated in having access to credit facilities to assist a return to a more regular trading environment. It will provide an 80% guarantee on lending to SMEs until the end of this year, for terms between 3 months and 6 years. The guarantee will be able to be used for a wide range of lending products between €10,000 and €1 million that have a maximum term of 6 years or less.

The Scheme will be available to all SME sectors, including primary producers in agriculture, horticulture and fisheries. These sectors are excluded from the current Credit Guarantee Scheme under State aid rules. They will be included under the Covid-19 Credit Guarantee Scheme arising from the amended State Aid rules under the European Commission’s State Aid Temporary Framework. The Scheme will also be available to small Mid-Caps (up to 499 employees) which are also excluded from the current Scheme.

My officials are currently engaged with the European Commission in seeking approval for the Covid-19 Credit Guarantee Scheme and ensuring the Scheme's adherence to the rules set out in their Temporary Framework.

The implementation of this Scheme will require primary legislation, the drafting of which has been approved by Government, and my officials are already working with the Office of the Parliamentary Counsel on this drafting work.