Catherine Murphy (Kildare North, Social Democrats)
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15. To ask the Minister for Enterprise, Trade and Employment if the €2 billion allocated to the Covid-19 credit guarantee scheme is in the account of the SBCI; if not, if the funds are drawn down by the bank in smaller amounts as required; if so, the location of same; and his plans for the balance of the fund if at the end of June 2021 there is a remaining amount from the €2 billion. [5292/21]

Leo Varadkar (Dublin West, Fine Gael)
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The COVID-19 Credit Guarantee Scheme (CCGS) has €2 billion in lending available for Irish businesses and is the largest guarantee scheme in the history of the State.  Its function is to add certainty to businesses that funding is available for working capital and investment purposes. Loans of up to €1 million are available for up to five and a half years at reduced interest rates.  Loans under €250,000 do not require collateral or personal guarantees. The Scheme is available to SMEs, small Mid-Caps (up to 499 employees) and primary producers and will run until 30 June 2020 in accordance with the European Commission’s State Aid Temporary Framework.

The guarantee schemes operating under the Credit Guarantee Act, which includes the CCGS, are based on contingent liability. What this means is that there is no cost to the State unless a participating enterprise is unable to pay back the loan for more than 90 days, whereupon the loan enters a default stage and the finance provider can call on the guarantee for 80 percent of the outstanding balance. These demands will be called on through the operator of the scheme, the Strategic Banking Corporation of Ireland (SBCI). 

In such a scheme there is no upfront cost to the state in the allocations to finance providers. The finance provider issues loans utilising their own funds. Allocations under the scheme were assessed in depth by the agency with the relevant market knowledge, the SBCI, in accordance with the finance providers market share and ability to manage a suitably sized loan book.   

While the State provides an 80 percent guarantee on these loans, this Department plays no role in the application or decision-making process in relation to loans offered under the Scheme, which, is fully delegated to the participating lenders. €26 million has been set aside in Budget 2021 for potential calls on the guarantee by finance providers and to cover operational costs.  

There have been over €260 million in loan applications from 3953 Irish businesses in the four months since the launch of the CCGS up to the 22nd of January. Since the New Year, 19 Credit Unions and 3 non-bank lenders have also joined the scheme adding greater geographical reach and diversification in loan products available.  

Joe Carey (Clare, Fine Gael)
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16. To ask the Minister for Enterprise, Trade and Employment if local authorities can exercise discretion in cases in which applicants failed to lodge applications for the business restart grant due to ill health, ill health of a family member or other exceptional circumstances; and if he will make a statement on the matter. [5357/21]

Leo Varadkar (Dublin West, Fine Gael)
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The Restart Grant Plus Scheme closed to new applications on 31 October 2020 and was administered by the local authorities. There are no mechanisms in place to allow late applications and the scheme has been superseded by a number of measures in Budget 2021.

The Revenue Commissioners’ Covid Restrictions Support Scheme, or ‘CRSS’, effectively replaced the Restart Grant Plus as part of Budget 2021. The CRSS offers a targeted, timely and temporary sector-specific support to businesses forced to close or trade at significantly reduced levels due to COVID- 19 of up to €5,000 per week.

The level of assistance now being provided to businesses across all sectors is unprecedented and ahead of that available in many other jurisdictions. We have sought to ensure that we had an appropriate mix of measures in place to support workers and businesses, so businesses can reopen and restore employment as we suppress the COVID-19 virus.  

The Restart Grant Plus Scheme was only one part of the wider range of schemes available to firms of all sizes, which includes the wage subsidy scheme, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs. A regularly updated list of enterprise measures for businesses is available on my Department’s website.

Catherine Murphy (Kildare North, Social Democrats)
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17. To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to a tailored support package available to the weddings industry in Scotland (details supplied); and his plans to introduce a similar package here. [5367/21]

Leo Varadkar (Dublin West, Fine Gael)
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We know the significant effects on business of the current Level 5 restrictions. Budget 2021 provides a significant package of tax and expenditure measures to build the resilience of the economy and to help vulnerable but viable businesses across all sectors.

My Department and its agencies have been focused on coming up with solutions to help businesses overcome the difficulties caused by COVID-19. Details of the wide range of supports available are on my Department’s website at .

We are providing for an extension of the tax warehousing scheme to include repayments of Temporary Wage Subsidy Scheme funds owed by employers and preliminary tax obligations for adversely affected businesses.

These measures are in addition to the July Stimulus €7bn package of enterprise measures, which includes the Wage Subsidy Scheme extended through 2021, the Pandemic Unemployment Payment, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst self-employed.

As announced in the July Stimulus, the Enterprise Support Grant was extended to assist eligible self-employed, including sole traders, who exit the PUP or jobseekers schemes to re-start their business. A self-employed person who closes their PUP should send their grant application to their local Intreo Centre to be processed.  Further information is available at www.gov.ie.

On the 9th of December, following engagement with the Arts sector and other self-employed sectors my colleague Minister Heather Humphreys T.D., Minister for Social Protection, announced the doubling of the PUP threshold from the current €480 over four weeks to €960 over an eight-week period effective immediately. This measure is to assist those who are trying to restart their businesses and will allow self-employed people to take on intermittent jobs without losing their entitlement to the PUP.

The Government also announced the provision of support of €50m for the live entertainment sector in Budget 2021. This will include measures for the commercial entertainment sector and will support live entertainment across the country. The 2021 supports for the live entertainment sector will be the subject of further consultation with stakeholders. It will also be informed by the pilot live performance scheme in 2020 which is being rolled out now.

I acknowledge the issue whereby businesses might not be eligible for the CRSS or other measures announced in the budget, such as the €50 million fund for live entertainment.  I have asked my officials to work with other relevant Departments to identify the type and number of businesses that fall outside the scope of the CRSS, and to report back to me with proposals on how we could devise an amended or new scheme.

My colleagues, Minister Catherine Martin T.D., Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht and Minister Charlie McConalogue, Minister for Agriculture, Food and the Marine may be able to provide more specific details on a roadmap to recovery for the events and hospitality industry, and details on supports for the food sector respectively.