Written answers

Tuesday, 8 September 2020

Department of Jobs, Enterprise and Innovation

Covid-19 Pandemic Supports

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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83. To ask the Minister for Jobs, Enterprise and Innovation if he will address issues raised in correspondence by a person (details supplied); and if he will make a statement on the matter. [21551/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Restart Grant Plus is aimed at helping small and medium-sized businesses with the costs associated with reopening and re-employing workers following COVID-19 closures. The scheme is designed to help with the cost of reopening or adapting business premises so that normal business can resume.

Tradespersons and service providers that operate on a mobile basis or that continue to work remotely have been better placed to continue to trade and many may not have incurred the same levels of losses, of ongoing overheads or reopening costs that a fixed premises business will have. It is in this context that the Restart Grant Plus is available to businesses operating commercially from a rateable premises within the Local Authorities rates system. All other businesses with the exception of non-rate paying B&Bs are excluded from the Restart Grant Plus scheme.

However, the Restart Grant Plus is just one part of the wider suite of schemes available to firms of all sizes, which includes low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.

My colleague Heather Humphreys T.D., Minister of Social Protection, Community and Rural Development and the Islands announced on 14 August 2020 that the Department’s Enterprise Support Grant is now available to assist self-employed recipients who are exiting the Pandemic Unemployment Payment (PUP) scheme with a once-off grant of up to €1,000 to re-start their business. The grant will be payable to self-employed micro enterprises which employ fewer than 10 people, have an annual turnover of less than €1 million and are not eligible for support from the COVID-19 Business Restart Grant or other similar business reopening grants.

Microfinance Ireland provides loans on favourable terms to micro-enterprises (employing less than 10) that cannot access finance from other finance providers. Loan terms typically up to 3 years, with no fees or charges and fixed repayments with no penalty for early repayment. The MFI COVID-19 loans offer loans from €5,000 to €25,000, with the equivalent of no interest for the first year and interest rates of 4.5% APR where the applicant is working with their Local Enterprise Office.

The new COVID-19 Credit Guarantee Scheme offers an 80% Government guarantee to participating banks to provide up to €2 billion in low-interest loans to eligible SMEs for up to six years. Loans provided under the scheme range from €10,000 to €1 million. Interest rates will vary depending on the loan, however they will be lower than would otherwise be available in the market. To apply for the scheme, businesses can contact a participating finance provider directly.

All COVID-19 Business Schemes are under constant review in terms of the evolving situation and will be adapted as circumstances dictate. In that regard, I can assure the Deputy that I will continue to work with my colleagues across Government and all stakeholders to examine how best to further assist businesses impacted by Covid-19 as part of the forthcoming National Economic Plan.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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84. To ask the Minister for Jobs, Enterprise and Innovation his plans to provide sufficient funding to the local enterprise offices and Údarás na Gaeltachta to fund all valid applications under the business continuity scheme; the estimated cost of doing so; the expenditure under the scheme to date; and if he will make a statement on the matter. [21707/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Business Continuity Voucher scheme was launched on 26th March. The purpose of the scheme was to provide expert guidance and advice to SMEs employing up 50 people and enable business owners make informed decisions about what immediate measures and remedial actions could be taken at the outset of this crisis, to protect staff and sales and eventually help the business recover.

The scheme was operated by the Local Enterprise Offices in 31 locations nationwide and was a resounding success in terms of uptake due to it being an appropriate response and support to recognised business needs for that point in time.

It is in the context of the reopening of the economy with more and more businesses having transitioned from the planning to opening up of their business that the Business Continuity Voucher was phased out. The BCV was subsequently superseded by the Restart Grant which was introduced to assist micro and small businesses to help them with the costs associated with reopening and re-employing workers following COVID-19 closures.

The LEOs continue to work with some existing applicants and recipients of Business Continuity Voucher vouchers and their subsequent business continuity plans.

My Department is providing funding of €27m for the LEOs to fund all valid applications approved under the business continuity scheme. The value of the Business Continuity Vouchers approved to the 26th August 2020 is €25,695,783. The value of Business Continuity Vouchers paid to the 26th August 2020 is €8,197,572.

Funding and schemes operated by Údaras na Gaeltachta are a matter for the Department for Media, Tourism, Arts, Culture, Sport and the Gaeltacht.

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