As part of the preparations for Brexit the Irish Government have put in place a fund to provide assistance to Irish Businesses that are impacted by the UK's impending exit from the EU.

Although these supports are welcomed it must be advised that there are strict qualifying criteria to avail of these financial supports. 

A summary of the Brexit supports would be as follows:

1. Brexit Loan Scheme:

Loans of between €25,000 and €1,500,000 can be sourced by the SME sector through the brexit loan scheme. The rate of interest would be around 4% and the term of the loan would be between 1 and 3 years.

These loans are for the purpose of working capital management and to fund changes in business activity because of Brexit:

Companies who meet the following criteria can apply:

1. A turnover of €50 million or less;
2. A balance sheet total of €43 million or less;
3. Are independent and not part of a wider group of enterprises;
4. Are established and operating in the Republic of Ireland;
5. Have 250 employees or less.

These loans cannot be used to refinance the businesses in financial difficulties not caused by Brexit

2. Support from Enterprise Ireland through the Agile Innovation Fund:

This allows companies to access funding of up to 50% in support of innovation projects with a total cost of up to €300,000.

The fund is open to eligible Enterprise Ireland client companies.

This can be suitable for companies conducting their first research & development project.

It allows companies to respond to threats and opportunities in new and existing markets following Brexit.

3. Online Retail Scheme:

This fund was set up to assist SME's in the retail sector to increase their customer base and build a more resilient business in the domestic and global market both offline and online. The size of the fund is €125million.

The companies who can apply must:

1. Have an online presence i.e. must be selling through a website or other social media outlet;
2. Must employ at least 20 people;
3. Must derive the majority of Revenue from retail;
4. Must have a plan to achieve at least 10% of international sales.

This scheme is not open to:

1. Retailers to whom the franchisor provides support online;
2. Companies in the hospitality or leisure industries;
3. Projects focused solely on the domestic market.

Successful applicants will be awarded funding to support a maximum of 50% of the project costs. The minimum grant amount payable is €10,000 under this Scheme.

Therefore, applications which do not propose company expenditure on the project of a minimum of €20,000 will be considered ineligible

4. Enterprise Ireland Be Prepared Grant:

This fund of up to €5,000 can be sourced by SME's to identify opportunities in new markets. It can be used to cover travel costs for both domestic and international employees, and consultant fees.

The support might involve:

• Researching opportunities in new markets
• Investing in innovation to differentiate and stay ahead of the competition
• Reviewing and optimising sourcing, transport and logistic arrangements
• Strengthening financial and currency management
• Preparing a worst case scenario plan
• Understanding and training in customs procedures with third countries

5. Market Discovery Fund:

The aim of the Market Discovery Fund is to incentivise companies to undertake market research and develop viable and sustainable market entry strategies in new geographic markets.

It covers internal and external costs of researching new markets for products and services:

The fund is available across three levels:

1. Level 1: Grant up to and including €35,000;
2. Level 2: Grant between €35,000 and €75,000;
3. Level 3: Grant between €75,0000 and €100,000.

Companies that can apply must:

1. Be a manufacturing or eligible internationally traded services company;
2. Not have raised finance in the form of equity in the previous six months;
3. Must be trading for at least five years, with a minimum of 10 employees and a turnover of at least €500,000.

High potential start ups can apply if they meet the following criteria:

1. Have a minimum of 5 full time employees;
2. Have been approved for an Enterprise Ireland Equity Investment;
3. Have drawn down equity investment funding for at least six months prior to the application for the Market Discovery fund.

The fund covers the following costs;

1. Wages and salaries of staff assigned to the project of research up to a maximum of €80,000 per annum per employee exclusive of employers PRSI and bonuses;
2. Overheads up to a maximum of 30% of wages and salaries;
3. Travels costs in relation to the project;
4. Consultancy fees for consultants hired to provide advisory services in relation to the project up to a maximum of €900 per day. Also, costs associated with business experts from Enterprise Ireland with experience, knowledge, and contacts to support the company up to maximum of €1,500 per day;
5. Trade fair costs up to a maximum of €75,000.

6. Brexit: Planning Voucher

InterTradeIreland offers 100% financial support up to £2000/€2250 (inclusive of VAT) towards professional advice in relation to Brexit matters.

This support can help your business get advice on specific issues such as movement of labour, goods, services and currency management.

 Are you eligible?

• Applications must be from an SME (250 employees or less) and Turnover < €50M (￡ equivalent);
• The business must have a satisfactory trading record (we reserve the right to request submission of Financial Accounts for the business);
• The assistance requested must relate to a Brexit issue;
• Companies based in Ireland must submit a valid tax clearance access number along with this application form.

For additional support and advice please note that the 31 Local Enterprise Offices (LEOs) throughout the country provide a range of financial supports designed to assist with the establishment and/or growth of enterprises (limited company, individuals/sole trader, cooperatives and partnerships) employing up to ten people.

Please click on this link to the Department of Foreign Affairs website which has the full details of all of the Brexit supports available from government - click here

Regards

John Nolan