Help is available.
Whether you run a one-man-band or employ a number of people, this is a time of concern for business owners.
However, there are some practical steps you can take to help ease the pressure.We spoke with the Meath Local Enterprise Authority for some guidance. They recommend you turn to your accountant or an LEO appointed mentor for some individual advice but they also outlined some other practical tips:
1. Talk to your bank
The first thing to do is pick up the phone and contact your bank now. 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.
2. Take immediate steps to manage your cashflow
Sit down and work out where the scope is in your business to:
- Lower costs
- Delay discretionary spend
- Talk to creditors to extend terms of credit
- Speed up payment of monies owing to you
- Explore supply chain financing options
3. Use available government supports for working capital
The Credit Guarantee Scheme supports loans up to €1 million for periods of up to 7 years. Applications can be made to the main three banks; AIB, Bank of Ireland and Ulster Bank. Eligibility criteria obviously apply.
Microenterprises can access COVID-19 loans of up to €50,000 from MicroFinance Ireland. Loans are available at an interest rate of between 6.8% and 7.8% (6.8% via LEO, and with full moratorium and no interest applied for the first 6 months). Businesses can apply through the Local Enterprise Office or directly at microfinanceireland.ie. Eligibility criteria apply.
Microfinance Ireland COVID-19 Business Loan FAQs
The €200m SBCI COVID-19 Working Capital Scheme for eligible businesses will be available within the next week. Maximum loan size will be €1.5 million (first €500,000 unsecured) and the maximum interest rate will be 4%. Applications can be made through the SBCI website at sbci.gov.ie. Eligibility criteria apply.
SBCI COVID-19 Working Capital Scheme FAQs
Enterprise Ireland is also on hand with a €200m Package for Enterprise Supports including a “Rescue and Restructuring Scheme” for vulnerable but viable firms that need to restructure or transform their business. Contact Enterprise Ireland for more info. https://www.enterprise-ireland.com/en/
4. Check your insurance cover
Check if your insurance policy covers you for an interruption in your business, or a temporary business closure, caused by COVID-19.
5. Engage with Revenue
If you have concerns about your ability to pay your tax liabilities speak to the Revenue Commissioners, who have advised:
"On an on-going basis, Revenue engages with viable businesses experiencing temporary cash flow or trading difficulties that affect the timely payment of tax.
"Revenue works very successfully with businesses that engage early to resolve their tax payment difficulties. Revenue will engage with any viable business that experiences temporary cashflow difficulties, including difficulties arising from exceptional circumstances such as the COVID-19 (Coronavirus) outbreak.”
Revenue has also posted advice for businesses experiencing trading difficulties as a result of COVID-19. This includes information on tax returns, the application of late payment interest, debt enforcement, tax clearance and customs.
6. Be aware of government supports
There are a number of government supports out there available for businesses struggling during Covid-19. 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.
The Government is asking those employers who have ceased trading if at all possible, to continue to pay workers during this period – at least at the jobseeker rate of €203 per week. The Department of Employment Affairs and Social Protection is setting up a refund scheme for employers to pay staff the €203 per week for each worker. This means that workers retain their link with employers and there is no need for them to submit a Jobseekers claim.
For those workers who have been laid off without pay, there is no need to visit an Intreo Centre. The DEASP has introduced a new support payment for the self-employed who have lost business and to those who have lost employment as a result of the COVID-19 pandemic, the COVID-19 Pandemic Unemployment Payment. This support pays €350 per week for a six-week period.
The full range of Enterprise Ireland, IDA Ireland, Local Enterprise Office and Údarás na Gaeltachta grant supports will be available to firms to help with strategies to innovate, diversify markets and supply chains and to improve competitiveness.
A Finance in Focus grant of €7,200 will be available to Enterprise Ireland and Údarás na Gaeltachta clients that want to access consultancy support to undertake immediate finance reviews.
Enterprise Ireland has also published a COVID-19 Business Response Plan.
Business Continuity Planning: COVID-19 Checklist:
The Department of Business, Enterprise & Innovation has updated its checklist on Business Continuity Planning which provides a checklist of preparatory actions for businesses in responding to COVID-19.
So whatever your own situation is, there are supports in place to aid you through this period. Where relevant contact your local LEO or ask your own financial advisor.
