Early Stage Supports
When some crazy guy starts the company, very often they are motivated by 90% of initiative and desire to change the world, and 10% of strife to make money. That is why very often startups and ideas die on paper or during the half year of operations. Luckily, Ireland has a broad number of programs to support the launch of new companies in different ways – almost every business idea would be able to find an option for their needs.
Grants
Local Enterprise Offices
The first and quite common option of fundraising are grant applications to the Local Enterprise Office (LEO). There are 2 main types of grants available for local entrepreneurs from their counties – Prime Grant and Feasibility Grant.
Prime Grant is the main tool to found the new startups in the area. It is available to all micro-enterprises within the first 18 months of their operation. To be eligible for the grant, you need to fit the following criteria:
- Be located and operating in the county of LEO;
- Employ not more than 10 employees;
- Be manufacturing, or domestically traded service business with the prospects of getting traded internationally;
- Be a business which will fit the Enterprise Ireland portfolio upon growth
- Have a need in funding in order to develop and scale the business.
Generally, the requirements aren’t tough, even more, they are more than acceptable. Essentially, Local Enterprise Office is interested in projects, which would develop manufacturing in the area, or will be service companies of certain size.
New Frontiers Entrepreneur Development Programme
The aim of the program is to support sustainable early stage startups across the country, which has a tangible growth potential. Funding in this program happens on a competitive basis. Every application should also fit the criteria of eligibility. The successful applicants should be able to prove their eligibility of extensive future growth and ability to employ more than 10 employees in a course of the next few years.
Innovation Vouchers
The initiative is launched and supported by Enterprise Ireland, and is aimed at SMEs, who are looking to develop their product or operations, but face the intellectual property issue. The voucher of €5,000 is to the SMEs to facilitate the process of cooperation by knowledge and technology providers (universities, research centres, etc) and small and medium businesses.
Lean Business Continuity Voucher
The mentioned voucher is an initiative of Enterprise Ireland, which provides the eligible companies with opportunity to access up to €2,500. These funds are transferred in the form of training and advisory support to the businesses to ensure the continuing operations of these businesses during the current pandemic.
Tax Refunds
Three-year corporate tax exemption
With the help of this program, new companies can apply for tax relief during the first three years of operational activity and trading. The relief goes as high as €40,000 per year, making it €120,000 maximum for three years. If the company’s corporate tax is between €40,000 and €60,000 a year then this sort of company could file a partial tax relief for them.
R&D Tax Credit
Every company with R&D expenditures taking place in the European Economic Area are eligible for application on the 25% tax relief. The subject of relief is the part of the corporate tax, which was paid due to R&D activities.
Incubators
NDRC LaunchPad
This incubator program is run by the National Development and Reform Commission in cooperation with Enterprise Ireland. They are giving pre-seed rounds of up to €20,000 during an extensive three-month incubation program. Moreover, the incubation program includes not only financial support, but a huge amount of guidance by expert mentors and assistance in definition of product’s UVP and positioning.
Enterprise Allowance Incentives
Short Term Enterprise Allowance
This program is designed by the Irish government to support those individuals who have lost their jobs, and are seeking opportunities of starting a new business of their own. The mentioned enterprise allowance replaces Jobseekers allowance. A future entrepreneur can receive funds within the program for 9 months.
Back to Work Enterprise Allowance
The second enterprise allowance program is designed for those who are out of work for more than 1 year. If such individuals set up a business of their own, they would be allowed to keep all of the welfare payments for the first year. In the following 2 years the eligibility to keep payments would be cut by 25% per year – to 75% and 50% respectively. The Enterprise Allowance program lasts for 3 years, which is a realistic period to develop a company from scratch.
Further Growth
Grants, Funding, and Special Programs
Local Enterprise Office
Feasibility Study Grant, which is given to the local enterprises seeking funds for different types of research and development expenses. This grant is created to assist different businesses in their efforts of conducting industry research and studies in order to optimize their business and costs, as well as identify the best and most promising niches to occupy.
The types of research and analysis headings, which are eligible for the grant is as follows:
- Market Research;
- Salary or labor research;
- Prototyping, Innovations, or Technical development;
- Consultancy costs; – Miscellaneous costs.
Both grants are obtainable for almost any early stage company and serve the purpose of giving sort of a small “head start” for the local enterprises.
Enterprise Ireland
Enterprise Ireland is the national organization to support the Irish companies on all stages of their development. As it was mentioned before, Enterprise Ireland is sort of a next step for a successful company in its path to success and scaling. In fact, one of the requirements of a Prime grant from the Local Enterprise Office was to be eligible for Enterprise Ireland’s portfolio in future.
– Online retails scheme fund
This scheme is created to enable the Irish-owned e-commerce and online retailers to grow and expand their operations outside the country. The main goal is to build a more resilient business in the homeland by accessing new markets and opportunities outside the country.
– Powering the Regions – Enterprise Centre Scheme;
– Brexit – Ready for Customs grant;
– Sustaining Enterprise Fund
Is a program of liquidity and medium term financial support from Enterprise Ireland. With the €180 million fund created in April 2020, any company can apply for funding of up to €800,000 at different growth stages – from established companies to startups.
– Sustaining Enterprise Fund – Small Enterprise
Is a program that will provide from €25,00 to €50,000 to small and medium enterprises as a short term capital injection to support continuity and ability to return to active trading within the course of 3 years.
– Strategic Consultancy Grant & Key manager grant
This grant provides partial funding to enterprises in their strife to hire a manager or a consultant with skills, crucial for operations continuity and growth.
– Business Process Improvement Grant
The business process grant is designed to support short to medium term projects of the company that will improve efficiency and business processes in the organisation. This grant also gives prospects to specific E-marketing support of the company’s operations with the goal to make internet a profitable and tangible source of company’s development.
LEADER program by National Rural Network
Essentially, this program is an option only for those, whose projects are targeted on development and sustainability of rural areas. There are three main categories of projects and products, addressing different problems of the rural areas:
– Economic development, Enterprise Development, and Job creation;
– Social Inclusion;
– Rural Environment.
The criterias of identification of the company’s main goal and suitability are strict enough, which makes it an outstanding opportunity for those, who really care about rural development. The grants’ funding varies from €30,000 to €500,000 or various types of projects. The funding rate also varies from up to 50% for private projects to 100% for some of the community projects.
Business Loans
The Future Growth Loan Scheme
This scheme is a long-term (7-10) years loan scheme to support businesses in their struggle towards sustainable growth and expanding operations. The loan is supported by the Department of Business, the Department of Agriculture, Enterprise and Innovation, Food and the Marine, the European Investment Bank and the European Investment Fund (EIF). The size of the loan can vary from €25,000 to €3 million per applicant.
Leasing, Hire purchase and other flexible funding schemes
Is another option provided by the Strategic Banking Corporation of Ireland, which covers a set of financial and entrepreneurial instruments. The common point between all of them is that the SBCI provides funds for purchasing certain equipment (cars, vehicles, machinery, etc) and gives these equipment to an applicant in return of certain regular payments. When the contract ends, the equipment is passed to the applicant under the different terms and conditions.
Invoice Financing
Is one of the flexible schemes, when the size of finance assistance is tied to the invoicing of the SMEs, motivating them to increase their trading and operations.
Brexit Loan Scheme
The mentioned loan scheme Is designed to support innovation, adaptation, and changes happening in the region due to Brexit taking place. The loan scheme is offered in partnership with the Department of Business, Enterprise and Innovation and the Department of Agriculture, Food and the Marine. With the help of these schemes, applicants are able to develop solutions to fit the new economic reality in the region and reflect the changes occurring with the Brexit.
COVID-19 Support
Enterprise Ireland
Business Financial Planning Grant
This COVID-19 initiative enables eligible Irish businesses to work with third-party consultants on detailed and financial planning, including forecasts and assumptions. The forecasts and assumptions are conducted keeping in mind the current state of the global and Irish economics of the COVID-19 era.
Lean Business Continuity Voucher
The mentioned voucher is an initiative of Enterprise Ireland, which provides the eligible companies with opportunity to access up to €2,500. These funds are transferred in the form of training and advisory support to the businesses to ensure the continuing operations of these businesses during the current pandemic.
COVID-19 products scheme
The COVID-19 outbreak revealed a severe imperfection in the continuity and adaptiveness of the businesses to diverse unpredicted economic events. Especially, industries like public health, as well as health products and solutions have shown their inability to shand the overloads and demand spikes due to pandemic outbreak. In response, the State Aid framework was temporarily amended to support the facilitation of research and development of the coronavirus-related products.
Powering the Regions – Enterprise Centre Schemes
This program is aimed at supporting the enterprise centres, which were impacted by the COVID-19 pandemic in their strife towards continuity of operations.
SBCI
COVID-19 Loan Scheme
The two main purposes of the COVID-19 Loan Scheme is to support innovations, adaptation, and change initiatives related to COVID-19, and fund working capital requirements. The applicants can apply on either of the two main goals. The loans are available through AIB, Bank of Ireland and Ulster Bank. The review process and due diligence are also subject to the bank’s own procedures. Though, one can’t file an application for this loan without a letter of eligibility from SBCI.
COVID-19 Credit Guarantee Scheme
This scheme is designed to facilitate lending to Micro, Small, and Medium sized enterprises, which were hardly impacted by COVID-19. The main target of this scheme are primary manufacturers – Agriculture and Phishing industries. Though, other industry participants can also apply to the loan scheme.