Dáil Éireann Debate, Thursday - 7 November 2024
51. Deputy Brendan Smith asked the Minister for Finance if he will outline his recent engagement with the SME sector, with particular reference to the sector’s concern about increased costs; and if he will make a statement on the matter. [45431/24]
Amharc ar fhreagraSmall and medium enterprises are the life-blood of the Irish economy, accounting for the majority of employment in the State, and this government is committed to supporting small businesses so they can continue to thrive. SME’s vital importance to our economy is reflected in our Programme for Government commitments.
As Minister for Finance I have proactively engaged with SMEs and SME representative bodies covering almost every sector, from technology companies to small local retailers. Over the last number of weeks and months I have listened to the concerns raised by small businesses and industry bodies from across the country, in particular during the Budgetary process. I am cognisant of the challenges facing SMEs. A number of supports have been put in place by Government to assist SMEs with these challenges.
Supports under the remit of my Department include tax based measures and I have announced a number of enhancements to schemes in Budget 2025. Examples of these changes include an increase to the VAT registration thresholds, an increase in the R&D Tax Credit, enhancements to the to the Employment Investment Incentive and adjustments to the Small Benefit Exemption.
Moreover, the Strategic Banking Corporation of Ireland falls under my Department’s remit. It currently has two schemes open for applications from SMEs (and farmers) which aim to facilitate access to credit at competitive prices in these areas important to SMEs and Government, namely challenges arising from invasion of Ukraine by Russia, growing businesses and investing in sustainability. The Ukraine Credit Guarantee Scheme and the Growth and Sustainability Loan Scheme were both developed in conjunction with the Department of Enterprise, Trade and Employment, and the Department of Agriculture, Food and the Marine.
The Ukraine Credit Guarantee Scheme opened for applications on 20 March 2023 and provides a lending capacity of €1.2 billion, offering low cost working capital to SMEs, primary producers (i.e. farmers and fishers) and small mid-caps (businesses with fewer than 500 employees), which have been affected by the economic consequences of the conflict in Ukraine. Loans under this scheme can range from €10,000 to €1 million, repayable over a maximum of six years. Loans of up to €250,000 do not require collateral or a personal guarantee.
The €500 million Growth and Sustainability Loan Scheme was launched on 19 September 2023. This scheme is targeted towards the support of SMEs and farmers to grow their businesses, increase their resilience and enable them to transition to environmentally sustainable practices and systems. It provides for loans to SMEs, including primary producers, ranging from €25,000 to €3 million, for terms of seven to ten years. Loans of up to €500,000 can be provided on an unsecured basis.
Furthermore, I have worked closely with colleagues in Government in particular the Minister for Enterprise, Trade and Employment who has policy responsibility for SMEs in ensuring the concerns of SMEs are taken on board.
The Department of Enterprise, Trade and Employment has a number of initiatives in place specifically targeted at supporting SMEs. The SME package announced on Budget day focused on retail and hospitality sectors in particular. For example, the Power Up Grant was announced in Budget 2025, targeted at businesses in the retail and hospitality sectors. It offers a one-off flat payment of €4,000 to eligible businesses, and is administered via Local Authorities. This grant is a follow-up to the Increased Cost of Business scheme which has paid out over €244 million this year to approximately 75,000 SMEs (38,000 in the retail and hospitality sectors).
Further information on these incentives is available on the Revenue website at www.revenue.ie and on the National Enterprise Hub at www.neh.gov.ie.
