![\"\"](\"http:\/\/irishexaminerusa.com\/wp\/wp-content\/uploads\/2019\/03\/2.41428018.jpg\")
The EU has approved a ten-fold increase in a state aid fund that could rescue Irish businesses hit by Brexit.<\/p>\nThe EU has approved a ten-fold increase in a state aid fund that could rescue Irish businesses hit by Brexit.<\/p>\n
Minister of Business, Enterprise and Innovation Heather Humphreys welcomed a move that will see the fund\u2019s budget rise from \u20ac20m to \u20ac200m.<\/p>\n
The fund can be used to offer rescue aid or restructuring support, in the form of loans, to small and medium-sized businesses negatively impacted by the UK\u2019s exit from the EU.<\/p>\n
The EU Commission has agreed to the amendment to the approved level of state aid that Ireland can offer via the fund.<\/p>\n
Minister Humphreys said she hoped the funds would never be needed.<\/p>\n
\u201cThe Rescue and Restructuring Scheme is an important safety net for companies,\u201d she said.<\/p>\n
\u201cIt is part of a suite of supports developed by my department to provide aid to enterprises impacted by Brexit.<\/p>\n
\u201cBy increasing the provision from 20 million euro to 200 million euro, the Government will be able to put in place a fund, should it be required, to offer both rescue aid and temporary restructuring aid to SMEs in financial difficulty or experiencing acute liquidity needs.<\/p>\n
“It goes without saying that we hope we never have to use this scheme, however, having the option there is prudent as part of our overall contingency plan for Brexit.”<\/p>\n
The scheme is designed to help viable companies that are in a position to restore their competitiveness but find themselves unable to access finance from markets.<\/p>\n