The European Commission has approved the Irish Government’s €200m scheme to support businesses through the unfolding economic crisis created by the COVID-19 pandemic.

The scheme was approved under the EU’s state-aid rules for businesses and will allow the Irish Government to provide direct financial support to large businesses.

Companies that have experienced a decline in turnover of at least 15% as a result of the coronavirus outbreak in Ireland will be able to apply for state-aid, up to a maximum level of €800,000 to address urgent liquidity needs.

This state funding is open to businesses with 10 or more full-time employees and will need to be repaid. The fund will be administered by Enterprise Ireland, as part of its emergency supports for Irish businesses impacted by the pandemic.

The €200m scheme will operate as an additional support alongside the SBCI’s COVID-19 Working Capital Loan Scheme, which offers loans ranging from €25,000 to €1.5m at a maximum interest rate of 4% to SME firms.