Background to the Ukraine Enterprise Crisis Scheme - Stream 1
Stream 1 – Liquidity measure
The Ukraine Enterprise Crisis Scheme (UECS) is a support scheme for businesses experiencing significant financial difficulty as a result of increased energy costs arising from the war in Ukraine.
Stream 1 is a liquidity measure to support viable Manufacturing and Internationally Traded Services companies experiencing trading difficulties to access funding up to €2 million. 50% of this funding up to a max of €500k is provided on a non-repayable basis.
To qualify for funding, companies must show a 15% reduction in EBITDA between 2021 and 2022/2023, as a result of the crisis resulting from the war in Ukraine. The level of support available will be considered in line with the reported EBITDA decrease amount of the applicant company.
Eligibility - Stream 1
Applicants must demonstrate that the company:
- Is engaged in Manufacturing and/or Internationally Traded Services. These are clearly defined in legislation – a summary is available here.
- Has experienced a 15% or more reduction in EBITDA, excluding exceptional items in 2022/2023 compared to 2021 as a result of the war in Ukraine. This reduction needs to exclude exceptional items.
- Has an Energy Efficiency Plan setting out actions that the business has taken or will take to achieve a greater level of energy efficiency that has been ratified by senior management of the company. If an Energy Efficiency Plan is not available then the company must commit to developing one.
- Can provide details of a Business Sustainment Project Plan (as part of the application) that details the EBITDA loss that can be attributed to the war in Ukraine, supported by accounting documents.
- Where the applicant company is part of a group then it must demonstrate that the parent company has had a 15% drop in EBITDA or provide details as to why the parent company is not in a position to support the applicant company.
Details of Support - Stream 1
Aid will be approved in the form of grants, repayable advances, equity and/or convertible loan notes.
The minimum aid award of €20,000 will not have a repayable advance associated with it and will be in the form of a grant.
For traditional bank funded companies (non-equity supported companies), support will be in the form of a Grant and Repayable Advance, up to a maximum of €2million. Financial support of 50% grant of the total amount of approved support (up to the maximum of €500,000 grant), will not have to be repaid to the approving agency subject to the company meeting the requirements of the Business Sustainment Project Plan and there is no breach of contract (i.e., the accepted Letter of Offer).
Approved funding may be paid in one or more instalments aligned to agreed project milestones of the plan. The plan will be where necessary co-funded by Enterprise Ireland with applicants ideally establishing a tri-partite agreement between Enterprise Ireland, the banks and the promoters.
In the case of projections, Enterprise Ireland will carry out an ex-post review of applicants and pro-rata clawback if the EBITDA decrease is significantly less than the applicant projected at time of approval.
Excluded Sectors and Companies
The Ukraine Enterprise Crisis Scheme is not open to undertakings:
- That are operating in the coal or steel producing sector.
- That are active in the primary agricultural, fishery or aquaculture sectors.
- Covered by specific rules for Financial Services.
- Under sanctions adopted by the EU.
- Companies cannot avail UECS Stream 2 and the Temporary Business Energy Support Scheme (TBESS) together.
In addition, Enterprise Ireland may choose not to support activities as ineligible or as involving an unacceptable reputational risk. These activities may include
- The gambling sector, including ‘gaming’ (as defined in the Gaming and Lotteries Act 1956).
- Adult entertainment.
- Tobacco and tobacco related products.
- Cannabis-based products which are not authorised as medicines.
Other supports for Enterprise Ireland Clients
Enterprise Ireland clients who are considering the Ukraine Enterprise Crisis Scheme, should also consider the following supports.
Making an enquiry
For all enquiries on the Ukraine Enterprise Crisis Scheme, please contact the Hub using Enquiry Form:
All information shared with Enterprise Ireland is treated as confidential, but we advise that you inform colleagues if you are sharing their contact details with us, see GDPR for further information.
How to apply
To see if the scheme is suitable for you, and to request an application pack, contact The Hub at Enterprise Ireland via the enquiry form
Closing Date for Applications
Applications for Stream 1 will close on November 17th 2023 at 17:30 Irish time.
Click here to return to Background to the Ukraine Enterprise Crisis Scheme
Click here for information on Stream 2