Large amount of businesses will crumble this year without ‘dramatic intervention’ – IBEC

The economic impact of Covid-19 could result in numerous SME businesses closing in Ireland unless there is ‘dramatic intervention’, IBEC has warned.

The group said this morning that there are three urgent policy areas the next government must act on to support SMEs, including a restart grant which would feature a flat payment of €15,000 per company.

IBEC’s chief economist Gerard Brady said that its research indicated that for seven in 10 companies, their cash reserves wont last until demand returns to its “normal” level.

“This ‘liquidity gap’ will need to be bridged by external funding in order for many of these companies to survive,” he continued.