Deepened Loan and Support Schemes Must Function Well to be Effective

Speaking on the latest enhancement of Government business supports, Conor Healy, Cork Chamber CEO said; “The Government announcement of enhanced measures is necessary and welcome. Steps such as the deepening of the SBCI loan scheme to provide an extra €250m for working capital loans and €200 million for longer term loans is useful for those seeking access to loan finance. The €20m microfinance fund, with no interest or repayment for 6 months may be particularly helpful. The creation of a new €180 million sustaining enterprise fund may also be useful manufacturing and international services which are both intense drivers of the Cork economy and we will liaise closely with members to assess the effectiveness. Online retail and trading schemes have potential to benefit through the crisis and beyond and we encourage uptake. As with all previous schemes, the proof will be the accessibility and clarity for business. If the funds are not used, then they are not a functional support.”
 
Today’s Chambers Ireland survey shows that 96% of businesses believe the current supports must be extended and 95% of respondents believe that there is a need for liquidity grants. 76% of businesses believe that the current deferral of Commercial Rates payments until the end of May will not be enough to have any meaningful impact on their business. It is essential that every Government related charge which impacts on cashflow such as VAT, PRSI or commercial rates, as well as other costs such as rent, mortgages, loan repayments and utilities controlled by financial institutions and others are deferred and effectively underwritten by government for a minimum of six months."
 
“We also require a medium term recovery strategy and 99% believe that major economic stimulus package is required. This must include commitment to our infrastructure, to the Cork Area Metropolitan Transport Strategy and the Urban and Rural Regeneration funds, to housing and to water infrastructure. When the time is right to get moving, our collective vision for Cork becomes all the more important for a stable future.”


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