The government should introduce a €10,000 ‘Adaptability Grant’ to help family businesses survive the ongoing Covid-19 pandemic, according to the Family Business Network (FBN) Ireland.

The network is urging the government to take a bold response in helping family and small businesses absorb the growing economic fallout from the pandemic.

FBN Ireland said that its €10,000 grant idea would help small businesses continue to trade by adapting their business model for the duration of the Covid-19 crisis. The grant could, for instance, help cafés and restaurants move to an online delivery service, the network added.

Other measures proposed by FBN Ireland for family-owned/small businesses include unlimited liquidity assistance, possibly achieved by underwriting interest-free loans from the Strategic Banking Corporation of Ireland (SCBI) and the pillar banks.

Additional measures suggested by FBN Ireland include:

In Association with

• Implementing a scheme akin to the UK’s, where the government will pay 80% of the salary for staff who are kept on by their employer.
• Waiving local authority rates for three months.
• Deferring water charges for the foreseeable future.
• Temporarily reducing the lower rate of employer PRSI.
• Reducing the VAT rate for the hospitality and tourism sector.

John McGrane (pictured), executive director of FBN Ireland, said that every hour brings news of another family business closing its doors and laying off valued employees. “As the backbone of the local community, providing 780,000 jobs, the closure of family businesses will have a devastating impact on the rural economy in particular,” McGrane continued.

“A bold response from the state is now needed. It is critical that government use its Covid-19 economic package to keep remaining family firms open for business – many of whom provide a link to the most vulnerable in our society.

“We must do all we can to maintain the link between family businesses and their employees. That’s why we are calling for the government to follow the lead of the UK and Denmark in introducing a scheme that protects the pay of workers who are at risk of unemployment.

“In doing so, we must not discourage those seeking to play their part in the national response by taking up temporary employment in the healthcare or … other sectors that are in need protection, including Ireland’s retail sector.”

Fitness Sector Struggles

Separately, representatives for the leisure, health and fitness sector are also urging the government to provide supports to help businesses being impacted by the Covid-19 pandemic.

Ireland Active, which represents businesses in the sector, said that its members employ some 10,000 staff across 350 public and privately-owned leisure centres, gyms, swimming pools, fitness education providers and recreation facilities nationwide, most of whom are now closed.

Significant job losses and jeopardised long-term business viability in the sector are arising as a direct results of the virus, the group warned.

Among the support measures proposed by Ireland Active are:

• Payment breaks for VAT, commercial rates, mortgage/loan/rent payments, PRSI payments and water charges.
• Business grants, employment supports, the reduction of VAT to 0% and supports for utility/energy costs.

Ireland Active is suggesting that the measures be put in place for an initial period of two months, with subsequent reassessment depending on how the Covid-19 pandemic progresses. The group is also advising the public to continue to exercise despite the business shutdowns.

Conn McCluskey, chief executive of Ireland Active, said that leisure, health and fitness industry has been particularly hard hit by the Covid-19 pandemic.

“The initial priority was to support our members through this difficult and quickly evolving time. Our focus is now turning to safeguard the longer-term viability of our members business’s that play a crucial role in providing a place of leisure and physical activity for individuals, schools, exercise groups and clubs,” McCluskey added.