Home > General > Significant supports for Irish SMEs likely in Budget

Significant supports for Irish SMEs likely in Budget

Written by Robert McHugh, on 13th Oct 2020. Posted in General

article headline

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."

Source: www.businessworld.ie

More articles from General

image Description

Aer Lingus owner warns of deepening travel slump as losses mount

Read more
image Description

Irish family businesses offer greater flexibility for female leaders

Read more
image Description

89% say working from home is costing them money

Read more
image Description

Need for all island collaboration has never been greater says Ibec

Read more
image Description

Chargify to open EMEA HQ in Dublin

Read more