Sustaining Enterprise Fund
Enterprise Ireland has a new fund to provide manufacturing and internationally traded services companies with capital to help stabilise and rebuild their businesses.
The purpose of the fund is to sustain companies who have been impacted by a 15% or greater reduction in actual or projected turnover or profit, and/or have significant increase in costs as a result of the Covid-19 outbreak.
To deliver on this, the objectives of the fund are to:
- Ensure eligible companies have access to necessary liquidity in the short-term; and
- Sustain the business so that the company can return to viability and contribute to the recovery of the Irish economy.
Am I eligible?
This €180m Fund is open to eligible companies which:
- Employ 10 or more full time-employees;
- Are operating in the manufacturing and internationally traded services sectors;
- For SMEs — must have applied for and have been unable to raise sufficient funding from the market, a financial institution or, where appropriate, the SBCI Covid-19 Working Capital Loan Scheme;
- Large companies — must have applied for and been unable to raise sufficient funding from an appropriate financial institution.
Businesses qualifying under this EU-supported scheme will be offered funding of up to €800,000.
The Sustaining Enterprise Fund will be used to support the implementation of a Business Sustainment Plan which must be provided by the company outlining the eventual stabilisation of the business and a return to viability.
The Covid-19 Business Financial Planning Grant will help companies to develop the Business Sustainment Plan.
Sustaining Enterprise Fund
- Funding of up to €800,000 available;
- Funding will be in the form of repayable advances;
- Funding to be repaid subject to the project objectives being achieved;
- An annual administration fee of 4%.
The advance payment to be repaid as follows:
- 3-year grace period;
- Repayment by the end of year 5, on successful achievement of the project objective.
Businesses will be required to submit a Business Sustainment Plan as part of their application for funding. The Sustaining Enterprise Project Plan should set out, if implemented, that it can lead to a stabilisation of the business and a return to viability.
The Business Sustainment Plan must identify the extent of the immediate liquidity needs and outline how support provided through the proposed measures will remedy the company’s immediate problems.
Eligible businesses must have seen a negative impact arising from the Covid-19 outbreak and also have seen (or expect to see) a 15% or greater reduction in actual or projected turnover or profit, or a significant increase in costs, as a result of Covid-19.
This scheme is not open to companies that were:
- In financial difficulty on 31st of December 2019 (within the meaning of the General Block Exemption Regulation);
- That are active in the primary agricultural, fishery or aquaculture sectors;
- That operate in the coal and steel sector;
- Covered by specific rules for Financial Services 1
In order to apply for the Sustaining Enterprise Fund, eligible companies will need to provide:
- A Business Sustainment Plan which details the business project plan, which if fully implemented, will enable the company to be financially viable
- Evidence of application for funding through the SBCI or financial institutions
- Evidence of the need for Covid-19 support funding
- Identification of the sources of additional funding required to fully implement the business project plan
- Evidence of a drop of 15% or more (or projected) in income arising from the Covid-19 situation.
Key contact/more information
Available from Enterprise Ireland. For further information, contact your Development Adviser or contact the Covid-19 Business Response Unit at email@example.com
1 Financial institutions would be those included in the Communication from the Commission on the application, from 1 August 2013, of the State aid rules to support measures in favour of banks in the context of the financial crisis (‘Banking Communication’) (OJ C 216, 30.7.2013, p.1)