The Government has announced further details of a new €200m scheme that aims to assist companies struggling with the fallout from Russia's invasion of Ukraine.
The Ukraine Enterprise Crisis Scheme, which was announced in the Budget, will be worth €200m and be administered by Enterprise Ireland IDA and Údarás na Gaeltachta.
It will be aimed at firms in the manufacturing and internationally traded services sector that are viable but vulnerable and will be comprised of two streams.
The first of those will help businesses that are suffering with liquidity issues.
It will offer aid of up to €500,000 in grants, repayable advances, equity and/or loans.
But in order to access the money the organisations will be required to prove they have been impacted by the war, through challenges such as increased input costs including energy and supply chain difficulties.
They will also have to devise and implement a Business Sustainment Plan.
The second stream will be targeted at energy intensive businesses that spent 3% or more of their turnover on energy before the crisis got underway.
Grants of up to €2m will be on offer to such firms to help offset the costs they incurred between February and December.
However, when calculating eligible costs, the companies will have to ensure the quantity of units of gas and electricity used for this purpose do not exceed 70% of their consumption for the same period last year.
The purpose of this is to make sure companies don’t get compensated for increased energy costs that have arisen from an increase in production.
Under both streams, those seeking funding will have to submit an energy efficiency plan.
The scheme was launched by the Tánaiste and the Minister for Public Expenditure this morning.
The Government has announced further details of a new €200m scheme that aims to assist companies struggling with the fallout from Russia's invasion of Ukraine | Read more: https://t.co/6FSF6RhVlF pic.twitter.com/EzR3HMrMKr— RTÉ News (@rtenews) October 27, 2022
"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," said Leo Varadkar.
"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."
Mr Varadkar also confirmed the Cabinet has approved the publication of legislation to provide up to €1.2 billion in low-cost loans to SMEs and small mid-caps that have up to 500 employees through the Ukraine Credit Guarantee Scheme.
Also announced in the budget and modelled on the Covid Credit Guarantee Scheme, it will open before the end of the 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.
"It is important that our supports are wide ranging and can deal with challenges across a number of fronts including falling operating margins, difficulties with supply chains and energy costs."