Groups welcome BES decision

BUSINESS groups across Ireland have welcomed the European Commission’s approval of extensions and changes to the Business Expansion Scheme and the Seed Capital Scheme, but some have expressed concerns about some of the conditions imposed.

The schemes help to bridge the financial gap for businesses in the pre and early start-up phases of new enterprises.

To comply with EU rules on state aids, a company that raises finance under either scheme will have the level of other state aids affected, with the exception of grants for research and development.

The Institute of Chartered Accountants said it is concerned that the conditions represented “further evidence of a hardening of the commission’s attitude to such schemes”.