Dáil Éireann Debate, Tuesday - 30 September 2025
383. Deputy Emer Currie asked the Minister for Enterprise, Tourism and Employment the uptake of the small companies administrative rescue process for businesses; and if he will make a statement on the matter. [51705/25]
View answerThe Small Companies Administrative Rescue Process, known as SCARP, has been designed to allow viable small and micro companies experiencing temporary financial problems to restructure with the agreement of creditors.
The Process has limited court involvement where creditors are engaged and are positively disposed to a rescue plan. It mirrors elements of examinership but in a simplified administrative context, thus reducing court involvement and making it potentially more cost efficient and capable of conclusion within a shorter period of time, and is therefore more suitable for the needs of smaller businesses.
In order to be eligible to avail of SCARP, the company must be a small or micro company as defined by the Companies Act 2014. A small or micro company is one which meets two of the following three conditions:
(a) No more than 50 employees.
(b) Turnover must not exceed €15 million.
(c) Balance sheet must not exceed €7.5 million.
From its commencement in December 2021, the uptake of SCARP has been gradually increasing, with approximately 100 companies having availed of the process to date. 2023 saw a 50% rise in SCARP notifications compared to the first year of operation and the numbers for 2024 were on a par with 2023 and the same is true for 2025 to date.
SCARP has been well-received by industry practitioners, small business representatives and experts in the field of insolvency who have welcomed its introduction, It has succeeded in assisting viable businesses to avoid liquidation and preserve employment. Reports have indicated that SCARP has saved over 1000 jobs to end 2024.
It is also important to note that the number of small companies that has utilised SCARP has outnumbered those companies that opted for examinerships during 2022, 2023 and 2024.
|
- |
2022 |
2023 |
2024 |
2025 (to date) |
|
SCARP |
22 |
33 |
30 |
19 |
|
Examinership |
13 |
18 |
11 |
11 |
