Enterprise Ireland Welcomes Business and Employment Boost Provided By July Jobs Stimulus

23rd July, 2020

Julie Sinnamon CEO Enterprise Ireland
Julie Sinnamon, CEO, Enterprise Ireland
  • New non-repayable element included in liquidity provided under the Sustaining Enterprise Fund
  • New round of successful Online Retail Scheme
  • Additional Seed and Venture Capital Funding
  • SME Brexit preparedness initiatives for enterprise
  • Covid-19 Life Sciences Fund
  • New Green Enterprise Fund
  • Restart Grant
  • The Local Enterprise Offices (LEOs) and Microfinance Ireland (MFI) will provide a mix of loan and grant assistance

Enterprise Ireland today warmly welcomed new additional initiatives to boost business and employment announced as part of the July Jobs Stimulus plan.

Sustaining Enterprise Fund

Important amendments are being made to liquidity and medium-term financial supports provided under the Sustaining Enterprise Fund (SEF) to Covid -19 impacted enterprises operating in the manufacturing and internationally traded services areas. Supports being provided under the SEF will now comprise a non-repayable grant element of up to 50% of the total value of the support being provided, up to a maximum value of €200,000, with the balance of funding being in the form of repayable support (equity, loan note or repayable advance).

These changes are being made in response to the extended ongoing difficulties and evolving liquidity needs being experienced by companies resulting from Covid-19.

The changes being introduced will provide greater assistance to vulnerable but viable companies to address their immediate liquidity needs, while taking the necessary actions to return to a position of viability and growth over the medium term.

Other measures announced

  • €5.5m for a second round of the successful Online Retail Scheme, a grant for retail companies to develop a more competitive online offer.
  • €10m additional funding for the Seed & Venture Capital Fund – to address shortages of liquidity and provide increased sources of finance for VC-backed SMEs.

SME Brexit Preparedness

€20m in funding has been allocated for two initiatives to support SMES to strengthen their customs and other supply chain infrastructure. Support will be in the form of:

  • Recruitment grants towards the costs of recruiting customs intermediaries.
  • Funding of up to €5,000 towards the cost of software, IT systems and other supply chain upgrades that are needed to meet future trading and customs declaration requirements.

Covid-19 Life Sciences Fund

The COVID-19 Life Sciences €25m Scheme is a targeted State support managed by Enterprise Ireland and IDA Ireland to aid the research, development and production of Covid-19 products in Ireland that are used in the fight against COVID-19.

Green Enterprise Fund

A new €10m Green Enterprise fund, which will support enterprises to strengthen the sustainability of their activities and realise the market opportunities arising from the transition to the low carbon economy. The fund will support capacity building, investment in R&D and Innovation and capital investment in start-ups, established SMEs and large companies.

Restart Grant

Enterprise Ireland also welcomed the enhancement and broadening of the Restart Grant which was announced today with an additional allocation of €300m. The Restart Grant, which is administered by local authorities, will benefit many Enterprise Ireland client companies as they stabilise, reset and recover from the impact of Covid-19.

Local Enterprise Offices (LEOs)

A package of liquidity and enterprise investment measures worth €55 million will be put in place to support small and micro companies through additional resources for MicroFinance Ireland and the Local Enterprise Offices.

Speaking about the Government announcement Enterprise Ireland’s Chief Executive Officer, Julie Sinnamon, said: “The Government today announced a set of timely and important new additional initiatives that will be welcomed by businesses and entrepreneurs. Last week, when Enterprise Ireland launched our Annual Business Results, we were clear about the challenges that Irish exporters will face in the short to medium term.

“This series of additional initiatives will provide important targeted assistance to Irish companies as they stabilise, reset and recover from the impact of the Covid-19 pandemic and get ready for Brexit. It will also assist companies reduce their carbon footprint and move to a more sustainable future.”

ENDS

Notes to editor:

Further details on the new schemes referred to above will be available on the Enterprise Ireland website in the coming days.

Sustaining Enterprise Fund

  • Eligible companies are those operating in the manufacturing or internationally traded services sector.
  • Funding of up to a maximum of €800,000 will be provided to eligible companies, with the level of funding determined by company needs and scale of company.
  • Funding will comprise a combination of repayable and non-repayable elements, and will be administered via the funding instruments below:
      • Non-repayable Grant aid/advances; and
      • Repayable Advances, or Equity or loan note.
  • The structure of the funding support is as follows:
      • Up to 50% of approved funding will be in the form of a non-repayable grant/advance.
      • The maximum non-repayable funding will be €200,000.
      • The balance of funding will be provided through one of the following instruments - repayable advance or equity or loan note.

Contact

For further information, please contact:

Paul Daly

Press & Media Relations

Enterprise Ireland

Paul Daly

+353 87 22 35 187