The government has announced more details of a new € 200 million plan that aims to help businesses grapple with the fallout from the Russian invasion of Ukraine.
The economic crisis plan in Ukraine, announced in the budget, will have a value of 200 million euros and will be managed by Enterprise Ireland IDA and Údarás na Gaeltachta.
It will target companies in the manufacturing and internationally traded services sectors that are viable but vulnerable and will consist of two streams.
The former will help companies suffering from liquidity problems.
It will offer grants of up to €500,000 in grants, repayable advances, own resources and / or loans.
But to access the money, organizations will need to demonstrate that they have been affected by the war, through challenges such as rising input costs, including energy and supply chain challenges.
They will also have to design and implement a corporate sustainability plan.
The second stream will target energy-intensive companies that spent 3% or more of their billing on energy prior to the onset of the crisis.
These companies will be offered grants of up to €2 million to offset costs incurred between February and December.
However, when calculating the eligible costs, enterprises must ensure that the number of gas and electricity units used for this purpose does not exceed 70% of their consumption in the same period of the previous year.
The purpose of this is to make sure that companies are not compensated for the higher energy costs resulting from an increase in production.
In both areas, those seeking funding must submit an energy efficiency plan.
The program was launched this morning by Tánaiste and the Minister of Public Expenditure.
“The Ukraine Enterprise Crisis Scheme will help businesses competing internationally and suffering the broader effects of the war in Ukraine as well as increasing energy costs. It will assist companies most exposed to the significant increases in energy costs largely driven by Russia’s brutal invasion of Ukraine and other negative effects of this crisis. This particular scheme will not be limited to agency client companies but will be limited to manufacturers and exporters,” said Leo Varadkar, reported RTE.
Varadkar also confirmed that the Cabinet has approved the publication of legislation to provide up to € 1.2 billion in low-cost loans to SMEs and small mid-cap companies with up to 500 employees through the scheme. Ukrainian credit guarantee.
Also announced in budget and based on the Covid Credit Guarantee Scheme, it will open later this year and provide low-cost unsecured working capital for SMEs and primary producers.
“Government is acutely aware of the impact the situation in Ukraine is having on Irish businesses in terms of trading difficulties as well as rising energy costs,” said Minister for Public Expenditure, Michael McGrath, reports RTE.
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