The Irish Times has reported that the budget is expected to include a new scheme to support the cash flow of companies forced to close, allowing them to claim expenses against income or corporation tax in advance.
The report says payments will be capped at €5k/week for the period of the forced closure. There will also be specific grants for sectors like events and hospitality and the wage subsidy scheme will now run until the end of 2021, instead of next April.
In a note today, Goodbody Stockbrokers said, "It is worth noting that a recent report from the Central Bank on SME liquidity needs estimated financial distress/default levels for SMEs of c.14%, similar to our own Stage 3 estimate for SME loans. It estimated the hotels and restaurants sector would account for around one-third of defaults in the SME sector, so specific grants for that sector will clearly be helpful."