As part of Budget 2023, new supports have been made available by The Department of Enterprise, Trade and Employment. The supports are designed to help businesses of all sizes with their rising energy costs and to make them more sustainable through longer and medium-term investments.
This support is being delivered through five new targeted energy supports schemes: three direct supports to business and two government-backed loans.
It is important to note that Businesses may be eligible for more than one scheme. These schemes are currently in development. Information regarding applications, eligibility criteria and administration will be made available in the coming months.
- Subject to State Aid approval, once legislated for, it is expected that the scheme will be backdated to September 2022 and will run until February of next year.
- The scheme will be open to businesses that carry on a Case 1 trade, are tax compliant and have experienced a significant increase (more than 50 per cent) in their natural gas and electricity costs.
- It will be administered by the Revenue Commissioners and will operate on a self-assessment basis.
- The scheme will operate by comparing the average unit price for the relevant bill period in 2022 with the average unit price in the corresponding reference period in 2021.
- In order to be eligible for the scheme, the average unit price must have increased by more than 50 per cent.
- Claims will be able to be made by businesses for up to 40 per cent of the amount of the increase in the bill, capped at €10,000 per month per trade.
- An overall cap will apply on the total amount which a business can claim.
- The scheme is being designed to be compliant with the EU State Aid Temporary Crisis Framework and will require approval by the EU Commission in the advance of making payments.
The €200 million Ukraine Enterprise Crisis Scheme will have two measures and will assist viable but vulnerable firms in manufacturing and internationally traded services.Measure 1 will provide aid in the form of direct grants, repayable advances, equity and/or loan notes aid to ensure liquidity and access to finance for enterprises that face economic challenges as a result of increased input costs and supply chain difficulties, and which have suffered a 15% decrease in operating surplus in 2022 compared to 2021.
Measure 2 will provide aid for additional costs due to exceptionally severe increases in natural gas and electricity prices experienced by energy-intensive businesses (with spend greater than 3% of turnover on energy) which have suffered a 15% decrease in operating surplus in 2022 compared to 2021, and doubled per unit cost of gas/electricity.
The new scheme will open in 2023 and will be administered by the Local Enterprise Offices.
The Growth and Sustainability Loan Scheme (GSLS) will make up to €500 million in low-cost investment loans of up to 10 years available to SMEs, including farmers and fishers and small mid-caps, with no collateral required for loans up to €500,000. A minimum of 30% of the lending volume will be targeted towards environmental sustainability. 70% of lending will be for strategic investments with a view to increasing productivity and competitiveness and thus underpinning future business sustainability and growth.More detail on the above and existing schemes is available by CLICKING HERE
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