There are a number of finance options available to businesses and SMEs.

According to head of food and agribusiness at ifac David Leydon, the big one for businesses to look out for, apart from employee support packages, is the COVID-19 Working Capital Loan Scheme offered by the Strategic Banking Corporation of Ireland (SBCI), which is available through the pillar banks.

Under this emergency loan scheme, SMEs with less than 250 employees and turnover below €50m are eligible for loans ranging from €25,000 to €1.5m at a maximum interest rate of 4%.

Companies can apply for an unsecured loan up to €0.5m.

This funding can be used for working capital or to finance innovation projects, with optional interest-only repayments from the start of the loan.

Leydon says smaller companies should also engage with Microfinance Ireland, which has rolled out a COVID-19 business loan to support small businesses through the current crisis.

Any business (sole trader, partnership or limited company) with less than 10 employees and turnover less than €2m can apply for loans ranging from €5,000 to €50,000.

Repayments

There are no repayment or interest charges on these loans for the first six months, which should ease cashflow pressure on businesses.

On top of these loan options, Leydon says that Revenue is not charging interest on the late payment of VAT, which could also help companies struggling for cashflow at the minute.

Businesses are urged to complete a revised cashflow and engage with their bank and Revenue if they are experiencing cashflow challenges.