COVID-19 Business Aid Scheme (CBAS)

The Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar TD this week announced €160m of additional measures to help businesses during the pandemic, which have been agreed by Cabinet.

One of these measures, the €60m COVID-19 Business Aid Scheme (CBAS) is being developed to provide grants to businesses ineligible for the government’s other existing schemes designed to help with fixed costs.

The scheme is aimed at businesses that broadly meet the CRSS criteria other than the condition that customers are unable or restricted from coming onto the premises. The new scheme will offer a grant of up to €8,000 spread equally over two quarters.

Wholesalers, caterers and event suppliers (as an example) who operate from a building, or similar fixed physical structure on which business rates are payable but which are not open to the public are eligible. However, businesses operating from mobile premises, or premises which are not permanently fixed in place, would not be eligible as they do not meet the definition of business premises. Businesses operating from premises on which no rates are payable are also not eligible.

Provisional criteria for COVID-19 Business Aid Scheme (CBAS):

• the scheme would be available to companies, self-employed, sole traders or partnerships; minimum turnover of €50,000
• are not owned and operated by a public body
• the business is not eligible for CRSS or sector-specific supports such as the Fáilte Ireland Business Continuity Scheme (launched 11 February).
• they are in receipt of a rates bill from their local authority for business which operates from a building, or similar fixed physical structure on which business rates are payable (mobile premises, or premises which are not permanently fixed in place, do not meet the definition of business premises nor do premises on which no rates are payable)
• the business must have a current eTax Clearance Certificate from the Revenue Commissioners
• the turnover of the business over the claim period is estimated to be no more than 25% of the:
  • average weekly turnover of the business in 2019; or
  • the projected average weekly turnover of the business for 1 January to 30 June 2021 for businesses that commenced after 1 November 2019
• the business intends to resume trading in full once government restrictions are eased

The additional measures announced as part of the €160m package include:

1. €10m extra for companies developing and making PPE and equipment used in fight against COVID-19.
   Firms researching or manufacturing PPE, sanitisers, tests, equipment or other medicinal products which are relevant to COVID-19 are eligible for funding of up to 50% of their capital costs.
2. An additional €90m for the Sustaining Enterprise Fund, which offers funding of up to €800,000, with €200,000 or 50% in non-repayable grants to eligible manufacturing and internationally traded services companies.

If you require assistance with any funding challenges or tax requirements you face as a result of the pandemic, please contact a member of our tax or corporate finance teams.