Covid-19 - Government Funding - Summary of announced schemes in Ireland - Deloitte
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Covid-19 - Government Funding Summary of announced schemes in Ireland 25 March 2020
Government Funding – Summary of announced schemes in Ireland
A raft of measures have been announced by the government regarding financial support
Funding category Details Eligibility How to apply Website Additional comments Next Steps
Credit Guarantee A Credit Guarantee Scheme has been Viable micro, small and medium sized Engage with the Bank(s) to begin https://dbei.gov.ie/en Refinancing of existing debts is excluded as the purpose of
Scheme announced to support loans up to €1 enterprises (SMEs). SMEs have fewer than 250 their standard loan application /What-We- this scheme is to facilitate additional lending. However, in
million for periods of up to 7 years to help employees have a turnover of €50 million or less process. It is only at this stage Do/Supports-for- cases where new lending is sought along with refinancing,
Small and Medium Enterprises (SMEs) (or €43 million or less on their balance sheet) are that a decision will be made on SMEs/COVID-19- the availability of a guarantee in respect of the new
impacted by COVID-19 related issues to independent and autonomous, have less than credit approval. supports/Credit- lending element should be of assistance in providing an
Participating lenders will make all Guarantee-Scheme-
have access to sufficient working capital. 25% of their capital held by public bodies, must overall package of support to the business, including
decisions on lending. Currently, COVID-19-FAQ.html
The purpose of the SME Credit Guarantee be established and operating in the Republic of Bank of Ireland, AIB and Ulster consolidation of existing debts Property-related activities
Scheme is to encourage additional lending Ireland. A Small Mid-Cap is an enterprise that is Bank are participating in the are also excluded.
to SMEs by offering a partial Government not an SME but has fewer than 500 employees. scheme. The Department plays no
guarantee (currently 80%) to banks against Business with up to 499 employees can apply to role in the application or
losses on qualifying loans to eligible SMEs. the scheme. decision-making process.
COVID-19 Microenterprises can access COVID-19 Any microenterprise (Sole Trader, Partnership or Talk to a Business Advisor in Local https://dbei.gov.ie/en Business Loans up to €50,000 for eligible micro-enterprises
Microfinancing loans of up to €50,000 from Microfinance Limited Company) who is currently trading not Enterprise Office /What-We- (Businesses with less than 10 employees and up to €2m
Loans Ireland. Loans are available at an interest in a position to avail of Bank finance and is or Do/Supports-for- annual turnover) that are currently trading. Loans may be
rate of between 6.8% and 7.8%. experiencing a COVID-19 negative impact on Register on SMEs/COVID-19- used for working capital and required business changes as a
their business (The negative impact must be a microfinanceIreland.ie supports/Microfinance result of COVID 19. Loan terms up to a maximum of 3 years.
-Ireland-COVID-19-
minimum of 15% of actual or projected in or Interest only payments up to 6 months. Interest rate of 6.8%
Business-Loan.html
turnover or profit). Talk to a loan Advisor on 01 260 if submitted through Local Enterprise Office or referred by
1007 Bank and 7.8% if applying directly.
COVID-19 Working A €200m Strategic Banking Corporation of Viable micro, small and medium sized Via the https://sbci.gov.ie https://sbci.gov.ie/sch Companies which cannot apply - SMEs/ Small Mid-Cap that: Approval of a loan under
Capital Scheme Ireland (SBCI) COVID-19 Working Capital enterprises (SMEs). SMEs have fewer than 250 website emes/covid-19-loan- are involved in the primary agriculture, and/or aquaculture the SBCI COVID-19
Scheme for eligible businesses has also employees have a turnover of €50 million or less application sector, are in financial difficulty (excluding cash flow Working Capital Loan
been announced. Maximum loan size will (or €43 million or less on their balance sheet) are pressures caused by COVID19 virus impact) are bankrupt or Scheme is at the
be €1.5 million (first €500,000 unsecured) independent and autonomous, have less than being wound up or having its affairs administered by courts discretion of the relevant
and the maximum interest rate will be 4% 25% of their capital held by public bodies, must in the last 5 years has entered in to an arrangement with finance provider.
be established and operating in the Republic of creditors, in the context of being bankrupt or wound-up or
Ireland. A Small Mid-Cap is an enterprise that is having its affairs administered by the courts, are convicted
not an SME but has fewer than 500 employees. of an offense concerning professional misconduct by
Business with up to 499 employees can apply to judgement, fraud, corruption, involvement in a criminal
the scheme. organisation, money laundering or any other illegal activity
where such illegal activity is detrimental to EU financial
interests.
Enterprise Supports A €200m Package for Enterprise Supports Eligibility is being finalised Application process is being https://enterprise-
including a Rescue including a Rescue and Restructuring finalised ireland.com/en/About
and Restructuring Scheme is available through Enterprise -Us/Services/Covid-
Scheme Ireland for vulnerable but viable firms that 19/Supports/Covid-19-
need to restructure or transform their Guide.pdf
business. Enterprise Ireland are also
offering a grant of €7,200 to clients for
finance review consultancy support.
©2020 Deloitte Ireland LLP – All rights reserved 2Government Funding – Summary of announced schemes in Ireland
A raft of measures have been announced by the government regarding financial support
Funding category Details Eligibility How to apply Website Additional comments Next Steps
COVID-19 Enhanced If a worker is diagnosed with COVID-19 or they are medically To receive the enhanced payment, must If suffering from COVID-19 or a doctor advises to https://www.gov.ie/e It will be paid for a maximum of 2
Illness Benefit required to self-isolate, they can get enhanced Illness Benefit or be: self-isolate, the doctor will then complete a n/service/df55ae-how- weeks where a person is self-
Supplementary Welfare Allowance. They will not have to wait 6 • self-isolating on the instruction of a medical certificate on the worker’s behalf and to-apply-for-illness- isolating but will be paid for the
days before they can apply for Illness Benefit. This means Illness doctor or diagnosed with COVID-19 send this directly to the department. To receive a benefit-for-covid-19- duration of a person's absence
Benefit can cover the first week of a COVID-19 diagnosis (or (Coronavirus) payment worker should provide doctor with: absences/ from work if they have been
medically-required self-isolation) and any subsequent weeks. • be absent from work and not getting Name, PPS Number, date of birth. Worker must diagnosed with COVID-19
The COVID-19 illness payment has been increased to €350 per paid by employer then complete an application form for Illness (Coronavirus).
week. • must be confined to their home or a Benefit (Form IB 1) which can be posted or
medical facility
delivered to an Intreo Centre. Online application
will be operational by the end of March.
Pandemic The Government have increased the COVID-19 emergency Eligible for the payment if aged between Send the completed application form by Freepost https://www.gov.ie/e
Unemployment support payment for people who have lost their job as a result 18 and 66 years and have lost employment to: PO BOX 12896, Dublin 1. n/service/be74d3-
Payment of the pandemic from €203 to €350. due to the COVID-19 (Coronavirus) covid-19-pandemic-
pandemic, are a non EU/EEA worker who Or unemployment-
If an employee's working hours are reduced to 3 days or less per has lost employment due to the COVID-19 payment/
week they can apply for Short Time Work Support. (Coronavirus) pandemic, are a student over Apply for the emergency Covid-19 payment is by
https://www.gov.ie/e
18 who has lost employment due to the applying online at mywelfare.ie.
n/service/c20e1b-
COVID-19 (Coronavirus) pandemic or if a All that’s needed is your email to set up a basic
short-time-work-
non-EU/EEA student over 18 who has lost MyGovID account. support/
employment due to the COVID-19
(Coronavirus) pandemic
Income Support Scheme The COVID-19 Wage Subsidy is a scheme which allows Employers must self-declare to Revenue Employers can apply on the Revenue website. The https://www.gov.ie/e The scheme will provide support on
employers to pay their employees during the current pandemic. that they have experienced significant self-employed should apply for the COVID-19 n/service/578596- incomes up to €76,000 or twice
Employers will be refunded up to 70 percent of an employee's negative economic disruption due to Pandemic Unemployment Payment. covid-19-wage- average earnings. It will be capped
wages - up to a level of €410. This is to be in place for 12 weeks. COVID-19, with a minimum of 25% decline subsidy/ at net €350 for incomes between
The employer is expected to make best efforts to maintain as in turnover, and an inability to pay normal This payment replaces the Department's Employer €38,000 and €76,000.
close to 100% of normal income as possible for the subsidised wages and other outgoings, in accordance Refund Scheme announced on 15th March, and Wherever possible, employers are
period.
with guidance to be issued by Revenue. any business that received refunds under the asked to top their employees
The employee must have been on the current scheme do not need to reapply. The wages.
payroll in February 2020 Revenue Commissioners will contact them directly There will be severe penalties for
to confirm that they meet the conditions for this any abuse of the scheme.
new scheme.
Utilities Support The following measures have been put in place to help Emergency Credit is for Pre-pay customers Must being Prepay Top Up Card to a shop. In the https://www.cru.ie/ It should be noted that customers After applying, please
customers remain connected to their electricity and gas supplies event customers cannot reach shops additional cru-announces- who have existing Emergency keep checking bank
during this period: credit will be supplied. Credit Debt on the meter before account as payment
• Domestic disconnections are suspended until 29 March covid-19-customer- may issue before the
the update will have to pay off the
• Emergency credit levels for prepaid (Pay As You Go) gas protection- formal department
emergency credit debt before being
meters will increase from €10 to €100 measures-to-assist- able to avail of the increased notification.
consumers/ emergency credit value.
©2020 Deloitte Ireland LLP – All rights reserved 3Government Funding – Summary of announced schemes in Ireland
The Minister for Finance and the Banks have agreed a whole range of measures including payment breaks
Funding category Details Eligibility How to apply Website Additional comments Next Steps
Banking Credit Supports On 18 March 2020 the 5 retail banks (AIB, Bank of Ireland, KBC, Permanent tsb No clear Contact relevant https://www.bpfi.ie/news/ba https://aib.ie/covid19 Based on our interactions with banks and direct
and Ulster Bank), along with their representative body Banking & Payments eligibility bank directly nks-set-joint-plan-support- https://www.bankofireland.com/coronavir lenders, businesses should consider:
Federation Ireland (BPFI) announced a series of measures to support people and requirements businesses-personal- us-update/ • Reforecasting trading and cash flows
businesses impacted by the COVID-19 pandemic. outlined customers-impacted-covid- https://www.permanenttsb.ie/about- • Completing scenario analysis
These include: 19-pandemic/ us/notices/2020/march/covid-19- • Reviewing lending documents
• An optional payment break of up to 3 months for businesses and personal statement • Identifying additional sources of capital
customers.
https://digital.ulsterbank.ie/personal/help • Keeping plans & options actively under
• A solution to ensure that COVID-19 applications for a payment break will review
-and-support/coronavirus.html
not affect credit ratings. Most importantly, we would encourage our
• Deferral of court proceedings for 3 months. https://www.kbc.ie/news-and-
press/latest-news-and-press- clients to proactively engage in discussions with
releases/covid-19-update-a-message-for- their banks.
kbc-customers Our Debt Advisory team can provide further
insights and guidance on this topic.
Personal Banking • In order to support public health policy, the Minister for Finance is No eligibility Not required https://www.gov.ie/en/press-
requesting that industry increase the limit on contactless payments to €50. required release/878d4d-
• The Minister for Finance has decided to defer the collection of stamp duty wednesdminister-donohoe-
on credit cards to July, which is normally levied in April, for which he will outlines-further-measures-to-
legislate for in due course. support-individ/
Central Bank of Ireland The Central Bank has made the decision to reduce the Countercyclical Capital No eligibility Not required https://www.gov.ie/en/press-
Buffer, from 1% to 0%. This decision will free up bank capital that can be used to required release/878d4d-
provide credit, and to restructure and extend the loans of bank customers, both wednesdminister-donohoe-
individuals and SMEs. The impact of the reduction of this buffer to 0% will free outlines-further-measures-to-
up in excess of €1 billion of bank capital. This capital amount has the potential to support-individ/
support approximately €13 billion of restructured lending to bank customers
that need assistance. https://www.gov.ie/en/press-
The Central bank has confirmed that it will allow banks to dip into their rainy-day release/a6d8fa-government-
capital reserves to keep lending flowing. It is anticipated that this move could announced-new-covid-19-
free up considerable additional credit for households and businesses. income-support-scheme/
Rental Support Emergency measures were announced on 19 March 2020 to protect tenants who No eligibility No application https://www.housing.gov.ie/h While tenants are expected to pay rent Renters encouraged to engaged with landlords as
have been impacted by COVID-19. These are: required needed ousing/private-rented- during the COVID-19 pandemic, income early as possible. Landlords asked to show
• A moratorium on notices to leave rental accommodation and a housing/government- supports and Rent Supplement are forbearance.
moratorium on rent increases for the duration of the COVID-19 pandemic approves-series-emergency- available if they are struggling to pay.
• An increase in the notice period for tenancies of less than six months from measures-protect-tenants These supports are provided by the
28 to 90 days Department of Employment Affairs and
Social Protection. Any rent arrears built up
will be payable, but landlords have been
asked to show understanding and reach
local arrangements in these circumstances.
©2020 Deloitte Ireland LLP – All rights reserved 4Government Funding – Summary of announced schemes in Ireland
Revenue has announced measures in relation to COVID-19 to assist SMEs experiencing cashflow difficulties
arising from COVID-19
Funding category Details Eligibility How to apply Website Additional comments Next Steps
Commercial Rates On 20 March 2020, the Government agreed with local authorities that https://www.housing.gov.ie/local-
Deferral they should agree to defer rates payments due from the most government/covid-19-
immediately impacted businesses - primarily in the retail, hospitality, coronavirus/support-businesses-
leisure and childcare sectors, for three months, until end-May. This impacted-covid-19-through-
measure will be implemented by each local authority in its own area. commercial-rates
Tax Returns Revenue has underlined that taxpayers should continue to file tax returns Taxpayers generally. https://www.revenue.ie/en/corpo Small and Medium Enterprises
on time. The filing of returns informs Revenue of a taxpayer’s liability or rate/press-office/press- (SME).
refund due (if any) for a period. releases/2020/pr-130320-revenue-
announce-measures-to-assist- For these purposes an SME is a
smes-experiencing-cashflow- business with turnover of less than
Tax Forbearance and • Application of interest to late payments of VAT suspended for Applicable to SMEs (as defined difficulties-arising-from-covid- €3 million who is not dealt with by
Rebates January/February. Effectively a VAT payment deferral. across). 19.aspx either Revenue’s Large Cases
• Application of interest to late payments of employer PAYE (income Division or Medium Enterprises
tax) liabilities suspended for February/March. Effectively a payment Division.
deferral.
SME’s are managed from both a
service and compliance standpoint
by Revenue’s Business Division.
Debt Enforcement All debt enforcement activity is suspended until further notice by Revenue Applicable to SMEs.
Commissioners.
Note: Businesses, other than SMEs,
who are experiencing temporary
Tax Clearance Current tax clearance certificates will remain in place for all businesses Applicable to SMEs.
cash flow or trading difficulties
over the coming months.
should contact the Collector-
Revenue has suspended the Relevant Contracts Tax (‘RCT’) rate review Applicable to SMEs. General’s office on (01) 7383663.
RCT Rate Review
that was scheduled to take place in March 2020. This process assesses the Alternatively, these businesses can
current compliance position of each subcontractor in the eRCT system and engage directly with their branch
determines their correct RCT deduction rate, i.e. 0%, 20% or 35%. As this contacts in Revenue’s Large
process may result in a subcontractor’s RCT rate increasing due to changes Corporates Division or Medium
in their compliance position, the review is suspended. Enterprises Division.
Subcontractors’ existing rates will continue for now, but any
subcontractor can check if their current rate should be reduced using the
self-review feature on the Revenue Online Service (‘ROS’).
‘Green routing’ status Revenue has also announced that critical pharmaceutical products and Applicable to SMEs.
for critical medication will be given ‘green routing’ status for customs’ purposes.
pharmaceutical
products and This to ensure that the importation process is completed without delay.
medication
©2020 Deloitte Ireland LLP – All rights reserved 5Your contacts
Lorraine Griffin Michael Flynn Anya Cummins
Partner Partner Partner
Head of Tax Financial Advisory Public Head of Deloitte Private
Tel: +353 1 417 2992 Sector Industry Leader Tel: +353 1 417 2240
Email: lorgriffin@deloitte.ie Tel: +353 1 417 2515 Email: ancummins@deloitte.ie
Email: micflynn@deloitte.ie
Business Continuity Financing Maximising Cash-flow Maximising Cash-flow
Ken Fennell Brian Fennelly Vincent McCullagh David Shanahan
Partner Partner Partner Partner
Restructuring Services Debt and Capital Advisory Services Head of Indirect Tax Taxation Services
Tel: +353 1 417 8803 Tel: +353 1 417 3947 Tel: +353 1 417 2771 Tel: +353 1 417 2598
Email: kfennell@deloitte.ie Email: bfennelly@deloitte.ie Email: vmccullagh@deloitte.ie Email: dshanahan@deloitte.ie
©2020 Deloitte Ireland LLP – All rights reservedThis publication has been written in general terms and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this publication. Deloitte Ireland LLP accepts no liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. Deloitte Ireland LLP is a limited liability partnership registered in Northern Ireland with registered number NC1499 and its registered office at 19 Bedford Street, Belfast BT2 7EJ, Northern Ireland. Deloitte Ireland LLP is the Ireland affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent entities. DTTL and Deloitte NSE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms. © 2020 Deloitte Ireland LLP. All rights reserved.
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