Article

Overview of Government Support Schemes Announced on 8th April 2020

On the 8th April 2020, the Government announced financial supports to assist small to medium sized businesses impacted by COVID-19. The schemes announced included both new initiatives and extensions to existing ones with the total value of supports estimated to be €1billion. The additional measures are outlined and explained in detail below.

 

Enterprise Ireland

The Enterprise Ireland Business Financial Planning Grant will provide the following:

  • €5,000 to enable companies to seek support from independent Financial Advisers (“FA”)
  • The FA will assist with the preparation of a short to medium term financial plan
  • The financial plan will help companies understand its immediate financial position and identify any future funding requirements
  • It will include a review of a company’s projections for the upcoming months and any mitigating actions to be taken to preserve cash in the short to medium term
  • The financial plan will allow companies to identify any liquidity issues, manage costs and assess options for raising new funds. The FA will support and assist companies in negotiations with third parties such as lenders etc

The loan cannot be used on the following:

  • Expenses incurred prior to the date of receipt of the application in Enterprise Ireland; 
  • General consultant expenses; or
  • Any sales related expenses or operating costs

Available to:

  • All Enterprise Ireland and IDA clients; and 
  • Any business operating in manufacturing or internationally traded services employing 10 or more full time employees

The Enterprise Ireland Lean Business Continuity Voucher will provide the following:

  • €2,500 to enable companies to access training or advisory services support
  • The training or advisory services provided should focus on the continued operations of the company during the current pandemic
  • The services can be in the form of management advice or training of management or staff within the company or a combination of both
  • The training or advisory services should concentrate on developing a crisis response where appropriate
  • The services must center around how the company can sustain its operations
  • It should include planning for resilience post crisis

Available to:

  • Small, medium or large client companies of Enterprise Ireland or Údarás na Gaeltachta (including High Potential Start-ups)
     

The Enterprise Ireland Sustaining Enterprise Fund includes the following:

  • Up to €800,000 available per qualifying business to support the implementation of a Business Sustainment Plan (“BSP”)
  • The BSP will outline how the implementation of this plan will return the business to a stable operating state
  • The BSP must include the extent of the current liquidity requirements and outline how the support provided could resolve the business’s immediate issues
  • Eligible businesses must have seen (or expect to see) a 15% or greater reduction in actual or projected turnover or profit, or a substantial increase in costs as a result of COVID-19
  • An annual administration fee of 4% is charged each year

Funding is to be repaid as follows:

  • Three-year grace period; and
  • Repayment by the end of year five, upon successful achievement of the project objections

Available to:

  • Any viable business operating in manufacturing or internationally traded services employing 10 or more employees; and
  • The company must have applied for and been unsuccessful at raising funds from alternative sources
     

SBCI

The SBCI Working Capital Loan includes the following:

  • €25,000 to €1.5m available per qualifying business
  • The loan is to provide for future working capital requirements or to finance innovation, change or adaption of the business to alleviate the impact of COVID-19
  • Loan terms range from one year – three years and are unsecured up to €500,000
  • Maximum interest rate of 4% with optional interest-only repayments may be available at the beginning of the loans
  • The loan amount and term is dependent on the purpose of the loan
  • Loans cannot be used for refinance of existing debt or refinance of undertakings in financial difficulties

Available to:

  • Any viable micro, small and medium sized business and small MidCaps with less than 500 employees; and which have the following:
  • Turnover of €50m or less (or €43m or less on the balance sheet);
    Independence and autonomy (i.e. not part of a wider group);
  • Less than 25% of their capital held by public bodies; and
  • Established and operating in the Republic of Ireland
     

The SBCI Future Growth Loan includes the following:

  • €100,000 to €3m available per qualifying business
  • Loan terms range from eight –ten years and are unsecured up to €500,000
  • Initial maximum interest rate of 4.5% for loans <€250,000 and 3.5% for loans>= €250,000. Variable interest rates subject to change
  • Optional interest-only repayments available in certain circumstances

The loan can be used for long term investments in any of the following:

  • Machinery or equipment
  • R&D
  • Business expansion
  • Premises improvement
  • Process innovation
  • People and/or systems

Loans cannot be used for the finance of the following:

  • Loans to undertakings in difficulty
  • Real estate development
  • Pure financial transactions
  • Other prohibited activities can be found at www.sbci.gov.ie

Available to:

Any viable micro, small and medium sized businessesand small mid-caps with less than 500 employees; and have the following:

  • Turnover of €50m or less (or €43m or less on the balance sheet);
  • Independence and autonomy (i.e. not part of a wider group);
  • Less than 25% of their capital held by public bodies; and
  • Established and operating in the Republic of Ireland

 

Microfinance Ireland

The Microfinance Ireland COVID-19 Business Loan includes the following:

  • €5,000 to €50,000 available per qualifying business
  • The loan is to support small businesses who have been negatively impacted by COVID-19
  • Loan term loans range up to three years
  • First six months – 0% interest and no repayments. Reduced interest rate 4.5% APR for Local Enterprise Office application and 5.5% for Direct applications
  • Eligible businesses must have seen (or expect to see) a 15% or greater reduction in actual or projected turnover or profit, and are not in a position to raise finance from banks or other institutions
  • Loans have fixed repayments with no penalty for early repayment

Available to:

  • Any business (Sole Trader, Partnership or Limited Company) with less than ten full time employees;
  • Annual turnover of up to €2m; 
  • Balance Sheet with Net Assets not exceeding €2m; and 
  • Not in a position to avail of finance from Banks or other commercial lenders

 

Did you find this useful?