Thursday, 17 December 2020
Department of Enterprise, Trade and Employment
Covid-19 Pandemic Supports
206. To ask the Minister for Enterprise, Trade and Employment the number of businesses in County Clare that have availed of the Covid-19 credit guarantee scheme; and if he will make a statement on the matter. [43794/20]
The COVID-19 Credit Guarantee Scheme (CCGS) is the largest guarantee scheme in the history of the State. Its function is to add certainty to businesses that liquidity is available for working capital and investment purposes. Loans of up to €1 million are available for up to five and a half years. Loans under €250,000 do not require collateral or personal guarantees.
The Scheme was originally scheduled to run until 31 December 2020 in line with the requirements of the European Commission’s Temporary Framework on State Aid. Following the extension of the terms of this Framework Government approved, on 24 November, the extension of the COVID-19 Credit Guarantee Scheme to run until 30 June 2021. It is available to SMEs, small Mid-Caps and primary producers.
As part of the Commission’s State Aid Temporary Framework, each loan under the Scheme must have reduced interest rates. These are clearly articulated in the documentation businesses sign with their finance providers.
The Government will cover 80 percent of any claims under the scheme. As per State Aid rules set by the European Commission, a premium must be paid to the Irish state which will alleviate some of the costs.
The CCGS has a draw down rate of on average €8 million per week. This is close to guaranteeing in a week what was guaranteed in the full year of 2018 in the standard CGS. The sectors utilising the scheme most prominently are wholesale/retail at 20 percent, accommodation/food services at 14 percent, agriculture at 11 percent and construction at 9 percent. This demonstrates the strong need and utilisation of the CCGS by businesses most affected by COVID 19.
As at 3 December 55 businesses in County Clare have availed of the CCGS and have drawn loans with a value of €2,366,044.
The CCGS which is currently available through AIB, Bank of Ireland and Ulster Bank will see a number of new lenders joining the Scheme early in the new year offering new product-lines. These new lenders will ensure increased regional availability of finance through the CCGS.
I want to assure the Deputy that I and my officials are constantly monitoring the Scheme and its effectiveness. I would also direct the Deputy to my Department’s website which has the details of this scheme as well as other relevant loan and grant supports available to Irish businesses.
207. To ask the Minister for Enterprise, Trade and Employment the number of businesses in County Cork that have received support under the restart grant and the restart grant plus; and if he will make a statement on the matter. [43791/20]
The Restart Grant and Restart Grant Plus schemes were designed to help small and medium sized businesses get back on their feet after what has been an exceptionally difficult time. The Restart Grant scheme was launched on 15 May with a budget of €250 million. The Restart Grant Plus scheme was launched on 10 August with an additional budget of €300m from the Government’s July Jobs Stimulus as a result of the increasing demand for the scheme.
The purpose of the schemes was to help with the cost of reopening or adapting business premises so that normal business could resume. Grant payments were administered by the Local Authorities via the commercial rates system as this was considered the most effective means to get urgent financial assistance to small businesses impacted by COVID-19.
The Restart Grant Plus scheme closed to new applications on 31 October and the COVID Restrictions Support Scheme (CRSS) operated by the Revenue Commissioners is now in place.
In response to the Deputy’s specific question and as at 11 December 2020, Cork City Council has awarded Restart Grant payments to 2170 businesses. 2506 businesses have benefitted from grant payments under the Restart Grant Plus Scheme.
Cork County Council has awarded Restart Grant payments to 3,019 businesses. 3,563 businesses have benefitted from grant payments under the Restart Grant Plus Scheme.
In total, over 118,600 applications have been managed under both Restart schemes. I would like to take this opportunity to thank the 31 local authorities and the Local Government Management Agency for their work in managing the applications under both schemes.