Government expands on rescue plans for businesses impacted by the spread of coronavirus

The Government has expanded on its rescue plans and €400m in financial aid for businesses impacted by the spread of coronavirus including the release of loans of up to €1.5m at reduced rates.

Rescue packages will also be made available while micro-finance loans will be increased.

Credit schemes with banks will also be opened up for businesses hit by the virus and its spread.

Business Minister Heather Humphreys said: “I am hearing from many businesses that they are very concerned about their cashflow in the coming weeks. I want to reassure them that there are a number of schemes that can help them meet their short-term working capital and liquidity needs.”

“This situation is changing from day to day, and I will continue to work across Government, with the representative bodies, and with the banking system to respond to ongoing developments in order to protect and support Irish businesses.”

Ms Humphreys has also cancelled her St Patrick's Day trip to the US over coronavirus.

The Business Minister was due to travel to San Francisco and Sacramento for a series of engagements.

However, she has now cancelled, saying businesses here are facing an unprecedented situation, and she wants to be in Ireland to support them.

Earlier, Finance Minister Paschal Donohoe also said he is aware of calls from hoteliers, restaurant owners and others to reduce the tourism rate of VAT back down to 9%.

He said he will be considering problems with the sector amid fears of a huge fall in tourism numbers coming here.