Written answers

Tuesday, 22 September 2020

Department of Trade, Enterprise and Employment

Covid-19 Pandemic Supports

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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114. To ask the Minister for Trade, Enterprise and Employment the measures he is planning to support the hotel and hospitality industry which are at imminent risk of a further 100,000 job losses and hotel closures unless restrictions limiting events to six persons are lifted immediately; the steps he will take to improve liquidity of such businesses; and if he will make a statement on the matter. [24823/20]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Since the onset of COVID-19, my Department has worked to ensure that there are appropriate responses is in place to assist businesses that have been impacted by the economic disruptions arising as a result of the pandemic. These responses include information and advisory supports, as well as liquidity supports in the form of grants and loan guarantee schemes.

My Department has worked with the Department of Agriculture, Food and the Marine to develop three Government-guaranteed loan schemes operated by the SBCI and delivered through participating finance providers.

Each of these schemes provides support to COVID-19-impacted businesses depending on their needs:

- COVID-19 Working Capital Scheme:

This scheme makes available working capital loans ranging from €25,000 to €1.5m to eligible businesses exposed to COVID-19-related impacts. Loans of under €500,000 are available unsecured. Loans under this scheme are available for terms of up three years to help businesses to innovate, change or adapt in response to the pandemic. These innovations may include adjustments to ensure that a business can continue to operate safely.

- COVID-19 Credit Guarantee Scheme:

This scheme makes up to €2 billion in lending available to eligible businesses. Loans under the Scheme range from €10,000 to €1m. Loans of up to €250,000 under the Scheme are available unsecured (except where this is a requirement of the product feature, as in the case of asset finance, invoice discount facilities, etc). Its focus is to provide additional liquidity to businesses in a wide range of sectors including primary producers and small mid caps (employing up to 500). Loans under this scheme are for terms of up to five-and-a-half years. Resulting from the 80 percent Government guarantee, businesses will be able to avail of loans at reduced interest rates.

- Future Growth Loan Scheme:

This scheme has recently been expanded and now makes up to €800m in lending available to eligible businesses to support long-term, strategic investment, including in response to COVID-19. Loans under the scheme range from €25,000 to €3m and loans of under €500,000 are available unsecured.

Loans under this scheme are for terms of 7-10 years.

Micro-enterprises that have been negatively affected by the onset of COVID-19 may also be eligible for lending from MicroFinance Ireland under its own COVID-19 loan scheme:

- MicroFinance Ireland COVID-19 Business Loan:

Loans under this scheme range from €5,000 to €25,000 and are available with zero repayments and zero interest for the first six months, with the equivalent of an additional six months interest-free subject to certain terms and conditions.

Loan terms are typically up to three years.

Loan schemes aside, businesses in the hospitality sector may also be eligible for the enhanced Restart Grant. This enhanced grant support is open to businesses that have had 25% reduction in turnover due to COVID-19 restrictions or downturn in trade, provided they commit to reopening and to hiring and sustaining employment.

The grant is based on the amount of the rates assessment for the premises for 2019 (excluding arrears) with a new minimum grant of €4,000 and a maximum grant of €25,000 (Increased from €2,000 min and €10,000 max).

Eligible firms include medium sized firms with up to 250 employees, as well as small firms (increased from 50 employees) with a turnover of up to €25m, and turnover of less than €100k per employee, increased from turnover limit of €5m. Therefore, a business with 50 employees and €5m turnover, 100 employees and less than €10m turnover, and so on with a business with 250 employees having a max. of less than €25m turnover are eligible.

The hospitality sector, restaurants, pubs, activity centres and tourist attractions, e.g., galleries, museums are eligible if they are operating from a rated premises. B&Bs in non-rated premises will be eligible to apply for the minimum €4,000 grant from Fáilte Ireland.

On 18th September last I announced the Government's decision to provide a 30% top-up to the Restart Plus Grant for eligible businesses in Dublin City and County. This top-up follows on the top-ups we announced for Kildare of 40% and Laois and Offaly of 20% respectively following the increase in restrictions on those counties in August. We have also provided a top-up for wet pubs of 40%.

More information on these schemes is available on my Department’s website, at dbei.gov.ie/coronavirus

Fáilte Ireland, as the National Tourism Development Authority has also responded to the COVID-19 crisis by immediately setting up a Business Supports Taskforce to establish the supports required by the industry to ensure the survival and successful relaunch of the sector.

More information on Fáilte Ireland’s supports to COVID-19 impacted businesses are hosted on a dedicated online COVID-19 Business Supports Hub on failteireland.ie

Some elements of this question fall under the remit of other Government Departments, and where appropriate those elements will be responded to by the Ministers of Finance and Housing, Planning and Local Government.

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