Government launches €2bn grant scheme for SMEs

It will provide low-cost loans to companies recovering from the economic effects of Covid-19

The loans, which will be available for up to six years, are part of the broader plan to build economic confidence while stimulating a jobs-led recovery. Picture: Julien Behal

The Government has launched a €2bn grant for Irish businesses, including those in the farming and fish sectors. 

The biggest state-backed loan guarantee the country has ever seen, which is a key part of the Government's July Stimulus package, will provide low-cost loans to companies recovering from Covid-19. 

Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar said the government is "determined" to help small and medium enterprises.

The Minister said: "This scheme will provide low-cost loans from €10,000 to €1 million to businesses, in addition to the grants that are already available.

"Businesses can apply directly to a participating bank. Under the scheme, the Government will provide an 80% guarantee for the loan."

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— Department of Enterprise, Tourism and Employment (@DeptEnterprise) September 7, 2020

The loans, which will be available for up to six years, are part of the broader plan to build economic confidence while stimulating a jobs-led recovery.

Businesses applying must declare that their turnover or projected turnover has reduced by 15% as a result of Covid-19.

Speaking at the launch, Minister for Finance Paschal Donohoe said the priority given by Government to SMEs is evident in the business supports now available.

He said: "Business supports that have been made available include the warehousing of up to €2 billion of tax liabilities by the Revenue Commissioners, the €2 billion Pandemic Stabilisation and Recovery Fund being implemented by Ireland Strategic Investment Fund, the waiving of commercial rates and the wage subsidy scheme that enabled businesses to retain their staff.”