Contact Us
New schemes to help SMEs during COVID-19

Article

New schemes to help SMEs during COVID-19

Find out here what you may be able to get

The government has announced a new series of initiatives for small businesses. Here we cut through the different schemes to give you the low down on what you might qualify for and some practical tips to get you started.
 

1. If you want to borrow between €5,000 and €50,000 to tide your business over.

Microfinance Ireland would be a good start point. To get a loan you need to be suffering a 15% drop in turnover as a result of COVID-19, have less than 10 full time employees and have annual sales of less than €2 million. 
 
You will also need to display difficulty getting credit from traditional banks and other commercial lenders. 
 
Interest rates are low at 4.5%.
 
See what you need to be ready with here 
 

2. If you need to borrow 25k or more 

Another scheme you could look at is the SBCI COVID-19 working capital loan scheme. These loans have a very attractive interest rate of maximum 4%, are unsecured up to €500,000 and have a maximum repayment term of 3 years. Even if you are unsure at this point whether or not you will ultimately draw down the loan it may be a good idea to start the process now as it will take time.
 
To apply you must follow a two-step process:
 
  1. First you must apply for a letter of approval from SCBI to confirm you are eligible for their scheme. To check out if you are eligible and to apply for the approval, go here 
  2. Once you have this letter you present this along with your detailed loan application to either AIB, Bank of Ireland or Ulster Bank
Each bank will be slightly different, but we would expect you will need to be ready with the below documents:
 
  1. A detailed business plan
  2. Management Accounts 
  3. Accounts certified/ audited by your accountant
  4. Cashflow Forecast - download a free template here
  5. Aged Debtors Listing
  6. Aged Creditors Listing
  7. Tax Clearance Certificate
 

3. If you want to get online 

 
The Trading Online Voucher Scheme has been expanded. It aims to help small businesses with up to 10 employees to trade more online, boost sales and reach new markets.
 
There is up to €2,500 available through the Local Enterprise Offices and this funding can be used towards adding payment facilities or booking systems to your website or developing new apps for your customers. 
 
This grant is based on a co-funding model which means businesses will have to contribute at least 10% of the cost of the project themselves.
 
More info here 
 

4. If you need professional help with planning during this crisis

 
The new Business Continuity Voucher, available through Local Enterprise Offices, is designed for businesses across every sector that employ up to 50 people.
 
The voucher is worth up to €2,500 in third party consultancy costs and can be used by companies and sole traders to develop short-term and long-term strategies to respond to the COVID-19 pandemic.
 
If for example you would like the assistance of a HR professional in dealing with staff or if you would like to work directly with an accountant to help you draft a proposal for bank funding this voucher could be very useful.
 
More info here 
 
 
Published 09/04/2020
 

Date published 9 Apr 2020 | Last updated 14 Apr 2020

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Related articles

Changes to the COVID-19 Wage Subsidy Scheme
Changes to the COVID-19 Wage Subsidy Scheme

7 months ago

Self employed can access increased Illness or unemployment benefit
Self employed can access increased Illness or unemployment benefit

7 months ago

Revenue’s TWSS compliance programme – what employers need to know
Revenue’s TWSS compliance programme – what employers need to know

7 months ago

Trustpilot

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 6,246 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 23 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free consultation

01 518 0535

Or contact us