Economy

Q&A: What Covid-19 supports are out there for businesses?

Range of options available to business owners who have been hit by the pandemic

Many businesses have been forced to shut their doors due to the Covid-19 pandemic. Photograph: iStock

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Colin Gleeson
Mon Dec 20 2021 - 14:48

Business owners can avail of a number of supports during Covid-19. Here, we run through exactly what they are.

My business has been hit badly by the pandemic. What supports are out there for me?

Firstly, the Employment Wage Subsidy Scheme (EWSS) has been extended to April 30th and the Covid Restrictions Support Scheme (CRSS) has been extended to January 31st to support businesses still affected by public health restrictions.

Under the EWSS, you can get a flat-rate subsidy per employee if your turnover has fallen by 30 per cent. The CRSS gives qualifying businesses a cash payment of up to €5,000 a week.

That’s a good start, but what about getting access to capital when things are so grim?

The Covid-19 Credit Guarantee Scheme provides loans from €10,000 to €1 million for terms up to five-and-a-half years. The size of the loan is linked to business turnover (25 per cent of 2019 turnover) or wage costs (double the annual wage bill in 2019).

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The scheme is operated by the Strategic Banking Corporation of Ireland (SBCI) through participating lenders. Extra funding will be provided to the scheme as part of measures announced in Budget 2022.

What else is out there in terms of loans?

Covid-19 business loans up to €25,000 are available through Microfinance Ireland (MFI).

There are no repayments for the first six months and the equivalent 12 months is interest-free subject to certain terms and conditions. The loan terms are typically up to three years and there are no fees or charges.

Who is eligible?

The loan is open to sole traders, partnerships and limited companies with fewer than 10 full-time employees and annual turnover of up to €2 million. You can apply through the MFI website or through your Local Enterprise Office.

I heard there were vouchers of some sort available too?

Yes, a trading online voucher scheme worth up to €2,500 is available to help small and microenterprises get online. A second voucher of up to €2,500 is also available. Contact your Local Enterprise Office for more information and application details.

What if I do not qualify for the CRSS or similar restart grants?

If you were getting the Covid-19 Pandemic Unemployment Payment (PUP), Jobseeker’s Benefit or Jobseeker’s Allowance and are reopening your business, you may qualify for the Enterprise Support Grant.

The grant, worth up to €1000, is aimed at sole traders who do not pay commercial rates and, therefore, do not qualify for the CRSS.

What help is out there in terms of keeping my business afloat over this uncertain period?

You may be eligible for a Business Financial Planning Grant from Enterprise Ireland of up to €5,000 to help you develop a business sustainment plan and to engage the services of an approved financial consultant. For more information and to apply, contact Enterprise Ireland.

What else is there on that front?

There is the Sustaining Enterprise Fund which is aimed at firms in the manufacturing and international services sectors with 10 or more employees. It is operated by Enterprise Ireland and provides advances of up to €800,000 which are only repayable when a business returns to good financial health.

The live performance industry has been hit particularly hard. What help is out there for them?

The Live Performance Support Scheme is open until 1pm on January 14th. It supports events due to be staged between December 2021 and January 2022 which had to be curtailed, cancelled or rescheduled due to current public health restrictions.

Successful applicants can get a grant for up to 50 per cent of their eligible production costs, up to €500,000.

Your event may also get funding if it is due to take place between February and June 2022, and pre-production costs (of at least 60 per cent of the eligible costs) arise between December and January.

Tell me about the Accelerated Recovery Fund?

Irish companies can apply for the Accelerated Recovery Fund if they are in the manufacturing and internationally traded services sectors, or if they had a 15 per cent reduction in turnover or profit as a result of Covid-19 in comparison to 2019 or 2020.

Eligible businesses can get funding between €150,000 and €1.8 million to adapt their operations and business models to support their recovery.

I had heard that certain rates waivers and tax measures were also being introduced?

Yes, a number of measures are available to help businesses reduce their operational costs. Rates due to local authorities are waived until the end of March. There are some exceptions to this, so you should contact your local authority for further details.

Thanks for that. But what about the tourism and hospitality sector, which has probably suffered the most?

The VAT rate for the hospitality and tourism sector will remain at the decreased rate of 9 per cent until the end of August 2022.

For the remainder of 2021, restaurant and café owners do not have to pay street furniture licence fees for tables and chairs used for outdoor dining. Restaurants can also continue to operate as takeaways for the rest of the year.

Also, vintners and other licensed premises will not have to pay court fees relating to the renewal of specified pubs and other liquor licences, or associated excise and stamp duties.