Enterprise Ireland has unveiled  a new funding stream to help businesses suffering the side effects of the Covid-19 pandemic.

The Sustaining Enterprise Fund for Small Enterprises offers a €25,000 to €50,000 short term  loan to eligible clients of the agency to support business continuity and strengthen their ability to return to growth.

To qualify, SMEs must have endured or be projected to endure a 15% or greater fall in turnover as a result of the pandemic. Details on loan and repayment terms have not yet been made available.

Chief executive Julie Sinnamon  (pictured) said: “The €180m Sustaining Enterprise Fund will provide repayable advances of up to €800,000 while smaller businesses can access repayable funding of up to €50,000 to support business continuity.”

Nearly two thirds of companies that have engaged with EI’s Business Response Unit since March say Covid-19 has had a ‘very negative’ or ‘critical’ impact. Financial planning was listed as one of the key priorities identified by client companies in responding to the crisis, with one-third of the companies already engaging with a financial institution.

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Of the 1,000 companies in contact, three main areas of business which have suffered were identified: exports, staffing and retaining employees, and  supply chains.

The supports available from Enterprise Ireland to help Covid-19 impacted businesses include:

Sustaining Enterprise Fund  This €180m fund will provide funding of up to €800,000 to eligible manufacturing and internationally traded services companies to maintain liquidity and sustain their businesses in the short to medium term. Funding will be in the form of a repayable advance.

Innovative HPSU Fund  Equity investment of up to €800,000 on a co-funded basis, is available for innovation led high potential start-ups (HPSUs), to maintain liquidity and sustain their businesses in the short to medium term.

Sustaining Enterprise Fund – Small Business   Smaller companies in the manufacturing and internationally traded services sectors (employing 10 or more with a turnover of under €5m) can access a repayable advance up to €50,000 to maintain liquidity and sustain their businesses in the short to medium term.

Covid-19 Business Financial Planning Grant   Worth up to €5,000, this support enables a company to prepare a financial plan to understand its immediate financial position, manage costs and identify the finance it requires.