SFA writes its pre-budget wishlist

A government-supported equity finance scheme for entrepreneurs, combined with a reform of capital gains tax (CGT) and a reduction in the rate of PRSI are included in the Small Firms Association (SFA) pre-budget submission.

“Access to funding for small business continues to be difficult and a 30% equity investment is now demanded by the banks before they grant approvals for small business loans. “The State has a key role to play in enabling entrepreneurs to meet that equity investment threshold, through enhancing the current Employment and Investment Incentive Scheme, which is completely under-utilised due to lack of awareness and over-complexity. “This scheme allows people who invest in small businesses a tax right-off,” said SFA chairman AJ Noonan.

The SFA has also called on the Government to introduce an “across-the-board” 20% CGT. Moreover, it wants a special relief equivalent to 10% of CGT for an entrepreneur about to sell a business. The CGT has been increased from a rate of 20% in 2008 to a current rate of 33%.