€5m For Businesses Affected By Flooding

A €5 million scheme has been announced by the Irish Government for small businesses who have been affected by flooding as a result of Storm Desmond earlier this month.

The funding will be administered by the Irish Red Cross, with further details to follow, but it is understood the scheme is only for small businesses that have been unable to secure flood insurance and have been affected by the recent flooding.

It is a humanitarian support contribution towards the costs of returning business premises to their pre-flood condition – including the replacement of flooring, fixtures and fittings, and damaged stock. However, the scheme will not provide a contribution to loss of earnings or loss of business good-will, the Government added.

For the purposes of this scheme, small businesses are those of up to 20 employees, and there will be two stages. The first will begin immediately and provide a contribution of up to €5,000, depending on the scale of damage incurred. It is thought that this will meet the needs for the majority of small businesses.

In the event of a business having incurred significant damages above €5,000, the second stage will provide a means to seek further support, but this will be a more lengthy process requiring a detailed assessment.

The total level of support available for both stages combined will be capped at €20,000.

In a statement, the Minister for Defence said: "I hope this scheme will go some way towards alleviating the hardship suffered by small businesses adversely affected by flooding throughout the country. I have seen at first hand the effects of this flooding and the costs that businesses must incur in order to get back up and trading.

"The intent is that the scheme will be operational in the coming days and that initial payments will be processed in advance of Christmas. The Irish Red Cross will administer and make payments under the scheme, which is designed to be as straight forward as possible for businesses."

(JP/LM)