Éamon Ó Cuív (Galway West, Fianna Fail)
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412. To ask the Minister for Jobs, Enterprise and Innovation if legislation prepared by her Department will be required to implement the new measures announced recently to help businesses recover from the effects of the Covid-19 pandemic; the progress made to date in drafting this legislation; when it is hoped to publish same; and if she will make a statement on the matter. [8939/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Government has introduced a range of new measures to assist businesses to reopen or change their business models in response to the Covid-19 health crisis. Some of those measures within my Department’s remit will require changes to legislation to come into effect or to allow the expansion of existing schemes to meet the increased demand as a result of Covid-19. These will require amendments to 3 existing Acts:

1. The Microfinance Loan Fund Act 2012;

2. The European Investment Fund Agreement Act 2018; and

3. The Credit Guarantee Act 2012 (as amended).

The Government approved the necessary amendments to all 3 Acts on 1st May 2020, and officials in my Department have been working urgently with the Office of Parliamentary Counsel on priority drafting of these amendments since then.

Amendments are needed to the Microenterprise Loan Fund Act 2012 to facilitate Microfinance Ireland (MFI) to be able to borrow moneys from bodies other than its parent body, the Social Finance Foundation, and to raise the ceiling on the amount of Exchequer grant that can be provided to Microfinance Ireland. This is intended to allow MFI to have access to greater sources of funding, to enhance its ability to provide more microenterprise loans to those qualifying enterprises in need of additional finance options.

I am working with the EIB Group on a €500 million expansion to the Future Growth Loan Scheme to support businesses recover from COVID-19 impacts. The FGLS is underpinned by a 64% counter-guarantee from the European Investment Fund. This counter-guarantee provides significant risk protection to the Exchequer against potential losses from the loan guarantee scheme. The FGLS was established using the European Investment Fund Agreement Act 2018. This Act allows for the Minister for Business, Enterprise and Innovation and the Minister for Agriculture, Food and the Marine to enter into agreements with the European Investment Fund (EIF) to facilitate access to finance for qualifying enterprises. The amendment to the European Investment Fund Agreement Act 2018 is needed in order to finalise these negotitations with the EIB Group.

The Microenterprise Loan Fund (Amendment) Bill 2020, which will amend the Microenterprise Loan Fund Act 2012 (as amended) and the European Investment Fund Act 2018, was approved for publication at Cabinet on Friday 29 May last.

Separately, the implementation of the new Covid-19 Credit Guarantee Scheme requires amendments to the Credit Guarantee Act 2012 (as amended). Since the Government approved the scheme, officials in my Department have been working urgently alongside the Office of Parliamentary Counsel on the priority drafting of the necessary legislation and are also continuing to work with the steering group to design and operationalise the scheme as soon as possible.

My priority is to ensure that this legislation can be progressed through the Oireachtas as a matter of urgency following the formation of a new Government. I am very aware of the pressure for enterprise to access these supports in order to be able to resume economic activity and hope that all Parliamentarians will facilitate its urgent commencement.