Louise O'Reilly (Dublin Fingal, Sinn Fein)
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70. To ask the Minister for Trade, Enterprise and Employment his views on whether the interest rates under the Covid-19 credit guarantee scheme are too high; his further views on the definition of fair interest rates for businesses under the scheme; and if he will make a statement on the matter. [17147/20]

Leo Varadkar (Dublin West, Fine Gael)
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The new €2 billion COVID-19 Credit Guarantee Scheme announced by Government 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 is a further development of the existing Credit Guarantee Scheme and will initially be available through the current finance providers Allied Irish Banks, Bank of Ireland and Ulster Bank Ireland.

The Scheme will provide an 80% guarantee on lending until the end of this year, for terms of up to 6 years and will offer a range of lending products between €10,000 and €1 million including overdrafts, working capital and term loan facilities.

The key feature of the Scheme is that it will ensure the provision of liquidity to businesses by leveraging the strong relationship between banks and their customers all over the country.

A distinction must be made between the current Credit Guarantee Scheme whereby banks offer loans at their normal market rates and the new COVID-19 Credit Guarantee Scheme which, due to the increased size of the guarantee as a result of the removal of the portfolio cap, is expected to provide interest rates at below market rates.

I met the CEOs of the three participating banks last week and stressed the need for interest rates to reflect the level of the State-backed guarantee being provided, with an 80% guarantee on individual loans and the removal of the portfolio cap.

In addition, I also stressed the need for them to ensure that this Scheme is implemented in an efficient and effective manner to ensure that this badly needed finance is quickly made available to businesses.

Officials from my Department and from the Department of Finance and Department of Agriculture, Food and the Marine along with the Strategic Banking Corporation of Ireland continue to engage with finance providers in relation to the specific terms and conditions of the Scheme.

The legislation in relation to the Scheme is expected to go through the Oireachtas this week, allowing for its swift enactment.

Louise O'Reilly (Dublin Fingal, Sinn Fein)
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71. To ask the Minister for Trade, Enterprise and Employment his views on whether injections of liquidity through grants are an integral part of the recovery from Covid-19 for microbusinesses, SMEs and family businesses; and if his attention has been drawn to the fact that many such businesses are afraid to take on new debt through loans. [17148/20]

Leo Varadkar (Dublin West, Fine Gael)
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As stated in the Programme for Government, we are bringing forward a Jobs Stimulus shortly to boost our economy and help restore employment. This July Stimulus will extend, enhance and add to the existing measures for COVID-19 impacted businesses already announced.

The Restart Grant was launched on 22 May 2020 and is a critically important tool to support small businesses to reopen their doors and get back on their feet. Grant payments available range from a minimum of €2,000 up to €10,000 available. The scheme was devised in recognition of the fact that micro and small businesses were and are particularly vulnerable to the economic effects of COVID-19.

The Restart Grant is just one part of a wider assistance package for business and for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.

The July Stimulus Package will help all firms with costs incurred during lockdown and in re-opening. All COVID-19 Business Schemes are under constant review in terms of the evolving situation and will be adapted as circumstances dictate, including adaptations to the phased opening of our economy.

I look forward to announcing the details of the July Stimulus Package with the Taoiseach shortly.