Written answers

Thursday, 3 June 2021

Department of Enterprise, Trade and Employment

Covid-19 Pandemic Supports

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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32. To ask the Minister for Enterprise, Trade and Employment the details and estimated cost of all schemes being operated by his Department to mitigate the effects on businesses due to Covid-19 during the first half of 2021; the estimated cost for the second half of 2021; the length of time he expects there will be a need for such supports to businesses; and if he will make a statement on the matter. [29213/21]

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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The financial support the Government is providing businesses and workers affected by the pandemic is unprecedented. Information on the wide range of supports can be found on my Department’s website enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.

To date over businesses have benefited by more than €6.5 billion in Wage supports and Employer PRSI foregone. Taxes owing to the Exchequer to the tune of €2.3 billion have been warehoused by over 85,000 businesses. Restart Grants saw over €630 million paid directly to businesses and a further €48.5 million has been set aside for payment via the SBASC grant. CRSS payments have totalled over €533 million. The total allocation for the Sustaining Enterprise Fund Scheme being provided in 2021 in my Department’s new estimate is €175m.

The SBCI Working Capital Scheme, the Future Growth Loan Scheme and the upcoming Brexit Impact Loan Scheme are each underpinned by a state guarantee (provided through the Strategic Banking Corporation of Ireland), with counter-guarantees from the European Investment Fund (EIF). The guarantees under these schemes are secured with Exchequer funding, with additional Exchequer costs related to administration of the schemes. The Exchequer costs for the schemes arise in accordance with the agreed schedules with SBCI and EIF.

The guarantee schemes operating under the Credit Guarantee Act, which includes the CCGS, are based on contingent liability. This means 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).There have been no calls on the guarantee to date. Operational and legal costs associated with implementation of the scheme from 1 January 2021 to 27 May 2021 amounted to €935,702. A value of €25.5 million has been included in the Estimates for 2021 to meet operational costs and any claims which might arise under the scheme.

The costs for the Department of Enterprise, Trade and Employment for the first and second half of 2021 across the different schemes are set out in the table below/attached.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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33. To ask the Minister for Enterprise, Trade and Employment the number of businesses in County Mayo that have availed of the Covid-19 credit guarantee scheme; and if he will make a statement on the matter. [30034/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The COVID-19 Credit Guarantee Scheme (CCGS) is the largest loan guarantee scheme in the history of the State.The Scheme provides €2 billion in lending, for terms up to five-and-a-half years and offers a range of lending products between €10,000 and €1 million at interest rates below market rates for similar type loans. It is available to SMEs and small mid-caps (business with less than 500 employees), including primary producers (businesses engaged in the farming and seafood sectors). The Scheme is available until 31 December 2021 following a Government decision in March to extend it in line with the extension of the European Commission’s Temporary Framework on State Aid.

In order to provide the public with relevant data on the performance of the scheme, my Department publishes weekly and monthly reports on its website. These reports provide data on loans drawn under a wide variety of themes and are available at

As at 20 May, 264 businesses in County Mayo have availed of the CCGS and have drawn loans with a value of €14,731,032.

The Scheme is currently available through three commercial banks, six non-bank lenders and nineteen credit unions. This long-term policy goal of diversification adds competition in the market and ensures a wide range of loan products are available throughout the regions.

I would strongly encourage businesses to avail of the low-cost lending facilities provided under the scheme as they look towards reopening.

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