Access up to €800,000 in funding with Enterprise Ireland’s new Sustaining Enterprise Fund to help companies maintain business continuity and liquidity. The purpose of the fund is to sustain companies who have been impacted by a 15% or greater reduction in actual or projected turnover or profit, and/or have a significant increase in costs as a result of the Covid-19 outbreak.
To deliver on this, the objectives of the fund are to:
- Ensure eligible companies have access to necessary liquidity in the short-term; and
- Sustain the business so that the company can return to viability and contribute to the recovery of the Irish economy.
This €180m Fund is open to eligible companies which:
- Employ 10 or more full-time employees
- Are operating in the manufacturing and internationally traded services sectors
- For SMEs – have applied for funding from a financial institution, including, where appropriate, through the SBCI Covid-19 Working Capital Loan/Future Growth Loan Schemes
- For large companies – have applied for funding with an appropriate financial institution.
Businesses qualifying under this EU-supported scheme will be offered funding of up to €800,000 – for smaller businesses, scroll down for further supports.
The Sustaining Enterprise Fund will be used to support the implementation of a Sustaining Enterprise Project Plan which must be provided by the company outlining the eventual stabilisation of the business and a return to viability. The Covid-19 Business Financial Planning Grant can help companies to develop the Sustaining Enterprise Project Plan.
Sustaining Enterprise Fund
- Funding of up to €800,000 available
- Funding to be repaid subject to the project objectives being achieved
- An annual administration fee of 4%.
The funding to be repaid as follows:
- 3-year grace period
- Repayment by the end of year 5, on successful achievement of the project objective.
Businesses will be required to submit a Sustaining Enterprise Project Plan as part of their application for funding. The plan should set out, if implemented, that it can lead to a stabilisation of the business and a return to viability.
The Sustaining Enterprise Project Plan must identify the extent of the immediate liquidity needs and outline how support provided through the proposed measures will remedy the company’s immediate problems. Eligible businesses must have seen a negative impact arising from the Covid-19 outbreak and also have seen (or expect to see) a 15% or greater reduction in actual or projected turnover or profit, or a significant increase in costs, as a result of Covid-19.
Who cannot apply?
This scheme is not open to companies that:
- Were in financial difficulty on 31st of December 2019
- Are active in the primary agricultural, fishery or aquaculture sectors
- Operate in the coal and steel sector
- Were covered by specific rules for Financial Services.
Applications
In order to apply for the Sustaining Enterprise Fund, eligible companies will need to provide:
- A Sustaining Enterprise Project Plan detailing the business project plan, which if fully implemented, will enable the company to be financially viable
- Evidence of application for funding through the SBCI and/or financial institutions
- Evidence of the need for Covid-19 support funding
- Identification of the sources of additional funding required to fully implement the Sustaining Enterprise Project Plan
- Evidence of a drop of 15% or more (or projected) in income arising from the Covid-19 situation.
For further information, contact your Development Advisor or contact the Covid-19 Business Response Unit at [email protected]
Sustaining Enterprise Fund for Small Enterprise
As part of the Sustaining Enterprise Fund, Enterprise Ireland will also administer a specific Sustaining Enterprise Fund for Small Enterprise. This fund will provide a €25k to €50k short term working capital injection to eligible smaller companies to support business continuity and strengthen their ability to return to growth and be trading strongly in 3 years time.
The purpose of the fund is to sustain eligible manufacturing and internationally traded services companies to provide support to companies: who have been impacted by a 15% or more reduction in actual or projected turnover or profit; and require access to liquidity to sustain business continuity.
To deliver on this, the objectives of the fund are to:
- Provide financial support (against detailed costs and cashflows) to eligible companies for a 3-month period to support business continuity
- Sustain business so that companies can return to viability and contribute to the recovery of the Irish economy.
Businesses qualifying under this EU-supported scheme will be offered funding of up to €50,000.
Under this fund, eligible companies can apply for up to a maximum of €50,000 per undertaking in the form of repayable advances. Funding available to companies is based on the following threshold:
- Companies with more than 10 employees and an annual turnover in their most recent financial statements not exceeding €1.5 million can apply for up to €25,000 in funding
- Companies with more than 10 employees and an annual turnover in their most recent financial statements greater than €1.5 million but less than €5 million can apply for funding up to €50,000.
The Project Plan should Detail:
Funding assistance sought
- The expenditure underpinning the financial assistance
- Summary cash flows for the next 3 months of trading (weekly for the first month)
- How the project plan strengthens business continuity in order to strengthen the position of the company to be trading in 3 years’ time.
Who cannot apply?
This scheme is not open to companies that:
- Were in financial difficulty on 31st of December 2019
- Entered financial difficulty after 31st of December 2019 for reasons not related to Covid-19
- Are active in the primary agricultural, fishery or aquaculture sectors
- Operate in the coal and steel sector
- Were covered by specific rules for Financial Services.
Applications
Eligible applicants are manufacturing and internationally traded service companies with:
- 10 or more full-time people on their payroll on the 29th of February 2020
- An annual turnover in their most recent financial statements not exceeding €5 million.
In addition, eligible applicants must have:
- Suffered, or be projected to suffer, a 15% or more reduction in actual or projected turnover or profit as a result of the Covid-19 outbreak (including a significant increase in costs as a result of the Covid-19 outbreak)
- Engaged with their financial institution on their financing needs to sustain the business through the short and medium term.
For further information, click here, contact your Development Advisor or contact the Covid-19 Business Response Unit at [email protected]
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