Government measures in key jurisdictions 4th edition - Flipbook - Page 59
Ireland
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Microfinance Ireland Covid-19 Business Loan (the “MFI Business Loan”) – the MFI Business Loan
is a Government initiative to support small businesses through the current period of uncertainty
and to protect job creation or sustainment in Ireland. The maximum MFI Business Loan available
from Microfinance Ireland has been increased from €25,000 to €50,000 as an immediate measure
to specifically deal with exceptional circumstances that micro-enterprises – (sole traders and firms
with up to 9 employees) – are facing in order to alleviate the financial pressures arising from Covid19. In addition, the terms of the MFI Business Loan include a six-month interest free period and a
repayment moratorium of up to six months, with the loan then repayable over the remaining 30
months of the 36-month loan period at an interest rate of between 4.5% and 5.5%. Lending
through this scheme has currently been paused, but it is expected that it will reopen once new
legislation is passed and additional Government funding, as outlined in the Microenterprise
Loan Fund (Amendment) Bill 2020 is made available.
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Enterprise Ireland Supports – the Department of Business, Enterprise and Innovation
has implemented a €200m package for Enterprise Supports including a Rescue and Restructuring
Scheme available through Enterprise Ireland for vulnerable but viable firms that need to restructure
or transform their business. In addition, Enterprise Ireland has created a new €180m Sustaining
Enterprise Fund in order to provide manufacturing and internationally traded services companies
with capital to help stabilise and rebuild their businesses.
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Pandemic Stabilisation and Recovery Fund (“PSRF”) – the PSRF is a €2 billion fund administered by
the Irish Strategic Investment Fund to support medium and large enterprises in Ireland "materially
impacted" by Covid-19. The PSRF will focus on investment in large and medium enterprises
employing more than 250 employees or with an annual turnover in excess of €50 million. Aside from
material impact, enterprises must be able to demonstrate that their business was commercially
viable prior to Covid-19, and they can return to viability and contribute to the Irish economy.
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Restart Grant Plus (the “Scheme”) – the Scheme provides grants between €4,000 and
€25,000 to businesses to aid them with costs associated with reopening and reemploying
workers following Covid-19 closures. The Scheme replaces and supersedes the existing
restart grant schemes (which previously provided grants between €2,000 and €10,000). The
Scheme will be available to businesses with a turnover of up to €25 million, with a cap
of €100,000 turnover per employee, and employing 250 people or less, which were closed or
impacted by at least a 25% reduction in turnover. The Scheme is a contribution towards the
cost of reopening or keeping a business operational following the pandemic. In addition,
eligible businesses in Kildare, Laois and Offaly affected by increased Covid-19 restrictions will
be entitled to a 20% top-up bringing the minimum payment to €4,800 and the maximum to
€30,000.
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A 6-month VAT reduction – there will be a temporary reduction to the standard rate of VAT in
Ireland from 23% to 21%. This 2% temporary reduction in the standard rate of VAT is effective
from 1 September 2020 for a six month period to 28 February 2021.
In addition to the above, a range of measures have also been agreed between the Irish retail banks
and the Irish Government as follows.
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A 6-month payment moratorium – banks, credit unions, retail credit firms and credit servicing firms
will grant payment breaks on mortgages, personal loans and business loans for those businesses and
individuals experiencing financial difficulties caused by Covid-19. Following ongoing discussions with the
Central Bank of Ireland ("CBI"), the Banking & Payments Federation Ireland have extended the original 3month payment moratorium to six months, which coincides with the majority of the EU and the EBA
guidelines. On 8th June, 2020, the CBI sent a ‘Dear CEO’ letter to CEOs of regulated firms that
previously granted payment breaks of up to six months to borrowers affected by the pandemic. The
‘Dear CEO’ letter outlines the CBI’s expectations of regulated firms when dealing with borrowers in
respect of Covid-19 payment breaks. It also includes the information that should be provided to
borrowers regarding Covid-19 payment breaks.
Government measures in key jurisdictions