Here are some practical steps, supports and guidance to help your business:
Banks
All the banks have announced that they will offer flexibility to their customers, and they may be able to provide payment holidays or emergency working capital facilities. It should be noted that these measures have yet to extend to increasing facility term lengths.
Cashflows
Take immediate steps to:
- Lower variable costs
- Delay discretionary spend
- Extend your payables
- Expedite your receivables
- Explore supply chain financing options
Government supports for working capital (some)
- The Credit Guarantee Scheme supports loans up to €1 million for periods of up to 7 years. Applications can be made to AIB, Bank of Ireland and Ulster Bank.
- Microenterprises can access COVID-19 loans of up to €50,000 from MicroFinance Ireland. Businesses can apply through their Local Enterprise Office or directly at microfinanceireland.ie.
- The €200m SBCI COVID-19 Working Capital Scheme for eligible businesses supports loans from €25,000 up to €1.5 million (first €500,000 unsecured) with a maximum interest rate of 4%. Applications can be made through the SBCI website at sbci.gov.ie.
- A €200m Package for Enterprise Supports including a Rescue and Restructuring Scheme is available through Enterprise Ireland for vulnerable but viable firms that need to restructure or transform their business.
Revenue
Engage with Revenue to defer payments and manage cashflows. Revenue has provided COVID-19 information and advice for taxpayers and agents experiencing difficulties caused by the impacts of COVID-19.
Revenue has also issued updated advice to SMEs experiencing cashflow difficulties arising from COVID-19. This includes information on tax returns, late payment interest, debt enforcement and tax clearance.
Businesses should be careful that the definition of a SME tax purposes is very different from that under Irish company law.
Other Government supports
Consider the use or suitability of other Government supports to your business including:
- COVID-19 Wage Subsidy Scheme: The COVID-19 Wage Subsidy Schemeenables employees, whose employers are affected by the pandemic, to receive significant supports directly from their employer through the payroll system. The scheme is operated by Revenue and is expected to last 12 weeks from 26 March 2020.
- Pandemic Unemployment Payment: The COVID-19 Pandemic Unemployment Payment is a payment of €350 per week. It is available to all employees and the self-employed who have lost their job due to the COVID-19 pandemic.
- Short-time Work Support: Employees of businesses that need to reduce hours or days worked can avail of the Department of Employment Affairs and Social Protection Short-time Work Support.
- Retail Protection and Improvement: The NSAI has published a COVID-19 Retail Protection and Improvement Guide to help retailers manage business continuity during the COVID-19 emergency.
- Commercial rates deferral: The government has agreed support for businesses impacted by COVID-19 through commercial rates deferral.
- Restaurants to operate as takeaways: Amendments to Planning and Development Regulations temporarily allow certain restaurants to operate as takeaways.
- Filing of annual returns: The Companies Registration Office has introduced changes to annual filing obligations for companiesto assist companies during the COVID-19 crisis.