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Just 16% of small and medium sized businesses have a plan for Brexit.\nThat is according to a survey by the Department of Business and Enterprise which suggests three quarters of SMEs will be hit by the UK\u2019s exit from the EU.
\nThe government has signed an agreement on Monday to fund a \u20ac300m loan fund for small businesses affected by Brexit.
\nBusiness Minister Heather Humphreys said it was important for businesses to plan for the fallout.
\nShe said: \u201cAs part of the qualifying criteria, 15% of their business must be impacted directly by Brexit.
\n\u201cYou have a lot of businesses in the food industry and in fact 40% of this loan fund is targeted at the food industry so they will know themselves whether Brexit impacts on them or not.\u201d
\nIn last October\u2019s budget, \u20ac14m was secured by the then Minister for Business, Enterprise and Innovation, together with \u20ac9m by the Minister for Agriculture, Food and the Marine, for the \u20ac23m for the Brexit Loan Scheme.
\nThe Department of Agriculture, Food and the Marine\u2019s share of funding ensures that at least 40% of the fund will be available to food businesses.
\nThe scheme is supported by the European Investment Bank Group, the European Commission and the Strategic Banking Corporation of Ireland.
\nThe signing of the counter guarantee agreement means that the total amount of \u20ac23m can be leveraged to provide \u20ac300m to Irish businesses affected by Brexit.
\nThe Scheme will be open to eligible businesses with up to 499 employees from March 2018, and has the potential to benefit over 5,000 companies.
\nAt the signing, Minister Humphreys also released the findings of her Department\u2019s second survey of SMEs about the impacts of Brexit on their businesses.
\nSpeaking at the signing, Minister Humphreys asked businesses to start planning now.
\n\u201cThe first step is to identify the lead person in your organisation who can assess potential impacts and scenarios and write your Brexit Contingency Plan.\u201d
\nThe B&A survey asked businesses about how they are responding to Brexit, and what financial supports they need in order to respond.
\nThe survey found that almost half of the firms were not investing in their businesses. When asked why, Brexit uncertainty is cited as a key reason.
\nFurthermore, 21% of medium sized businesses have postponed at least one investment decision in reaction to Brexit.
\nMinister Humphreys said: \u201cIt\u2019s time for Irish businesses to start planning and preparing for Brexit. The Brexit Loan Scheme will provide financing support at lower interest rates and with lower collateral requirements.
\n\u201cI encourage businesses to use this financing to help improve their operational competitiveness, to innovate or to diversify their trade footprint as they prepare to face Brexit over the next year and beyond.\u201d<\/p>\n