Restart Grants for Irish Businesses: Financial Support During the Pandemic

by | Apr 10, 2023 | Uncategorized | 0 comments

The COVID-19 pandemic has had a profound impact on businesses in Ireland, with many struggling to survive due to the economic downturn caused by the pandemic. To help support businesses through this challenging time, the government has introduced a range of financial supports, including the Restart Grant.

In this article, we’ll explore:

  • What is the Restart Grant?
  • Who is Eligible for the Restart Grant?
  • How Much Funding is Available?
  • Is the Restart Grant Taxable?
  • Application Process and Deadline
  • What Happens if a Business is Not Eligible for the Restart Grant?

What is the Restart Grant?

The Restart Grant is a financial support scheme for businesses that have been adversely affected by the pandemic and have a turnover of less than €25 million. The grant is aimed at helping businesses cover the costs of reopening and adapting their premises to comply with public health guidelines. Eligible businesses include those in the retail, hospitality, tourism, and personal services sectors.

The Restart Grant was announced as part of the government’s July 2020 Jobs Stimulus package and was designed to provide much-needed financial support to businesses affected by the pandemic. The scheme was administered by the local authorities and provided a minimum grant of €2,000 and a maximum grant of €25,000.

Who is Eligible for the Restart Grant?

To be eligible for the Restart Grant, businesses must have been trading on or before February 29, 2020, and have experienced a significant drop in turnover due to the pandemic. The grant is available to both small and medium-sized enterprises (SMEs) and larger businesses with up to 250 employees.

Businesses must also have a tax clearance certificate and have commercial rates paid up to date. In addition, businesses that have already received funding under other COVID-19 support schemes, such as the COVID-19 Business Continuity Voucher or the Trading Online Voucher Scheme, are also eligible to apply for the Restart Grant.

How Much Funding is Available?

The amount of funding available under the Restart Grant depends on the size of the business and the extent of its losses due to the pandemic. The grant provided a minimum of €2,000 and a maximum of €25,000 to eligible businesses.

Businesses with a turnover of up to €250,000 were eligible for a grant of €2,000, while businesses with a turnover of between €250,000 and €1 million were eligible for a grant of up to €5,000. Businesses with a turnover of between €1 million and €5 million were eligible for a grant of up to €15,000, while businesses with a turnover of between €5 million and €25 million were eligible for a grant of up to €25,000.

Is the Restart Grant Taxable?

Yes, the Restart Grant is subject to tax in Ireland and recipients are required to include it in their taxable income. However, the government has announced a tax credit equal to the amount of the grant, up to a maximum of €2,000, to help alleviate the tax burden on businesses.

In other words, if a business receives a €2,000 grant, they will not have to pay any tax on that grant. If a business receives a grant of more than €2,000, they will only have to pay tax on the excess amount.

Application Process and Deadline

The application process for the Restart Grant was open until September 30, 2020, and is now closed. Businesses were able to apply through their local authority’s website or portal. The application process required businesses to provide certain documentation, such as their tax clearance certificate and details of their turnover and losses due to the pandemic.

The local authorities were responsible for assessing the applications and distributing the grants to eligible businesses. The grants were intended to provide financial support for businesses to cover the costs of reopening and adapting their premises to comply with public health guidelines.

What Happens if a Business is Not Eligible for the Restart Grant?

If a business is not eligible for the Restart Grant there are still other financial supports available to them. For example, the COVID-19 Restrictions Support Scheme (CRSS) is available to businesses that are required to close or significantly restrict their operations due to COVID-19 restrictions. The CRSS provides a cash payment to businesses based on their average weekly turnover in 2019, subject to a maximum of €5,000 per week.

In addition, the Employment Wage Subsidy Scheme (EWSS) provides financial support to eligible employers to help retain employees and maintain employment levels during the pandemic. The scheme provides a subsidy of up to €203 per employee per week and is available to employers in all sectors, including those that are not currently closed due to COVID-19 restrictions.

Conclusion

The Restart Grant has been a valuable financial support for Irish businesses affected by the pandemic. While the application process has closed, businesses that have received the grant can use the funds to help cover the costs of reopening and adapting their premises to comply with public health guidelines.

However, it’s important to note that there are other financial supports available to businesses that have been negatively impacted by the pandemic. The CRSS and EWSS are just two examples of the additional financial supports available to businesses that may not have been eligible for the Restart Grant.

As the COVID-19 pandemic continues to impact businesses across Ireland, it’s important for businesses to stay informed about the financial supports available to them. By taking advantage of these supports, businesses can continue to operate and provide much-needed goods and services to their communities during this challenging time.