The ongoing pandemic has caused a lot of volatility in the economic environment, making it difficult for small businesses to survive. Fortunately, the Small Company Administrative Rescue Process (SCARP) was set up to help these companies stay afloat. Last week, Scarp had its busiest period yet with six firms being rescued from insolvency and 23 jobs saved! Let’s investigate further into the details of this process and why it is so important for small businesses.
What is SCARP?
The Small Company Administrative Rescue Process (SCARP) is an out-of-court debt restructuring scheme that helps small businesses deemed to be viable by advisors like Baker Tilly. It was established in 2020 as part of Ireland’s response to the Covid-19 pandemic in order to help struggling businesses stay alive and preserve jobs during this uncertain time.
The Benefits of SCARP
This scheme provides significant financial relief to small business owners who are struggling with high wage costs, high inflation, and rising interest levels. Not only does SCARP offer a simplified debt restructuring process but it also prevents companies from having to go through costly court proceedings which can be damaging both financially and reputationally. Furthermore, SCARP allows business owners access to professional advice throughout the entire process which can prove invaluable when dealing with complex legal matters.
Why Is This Important?
As more and more businesses are feeling the effects of the pandemic, it is essential that structures such as SCARP remain in place in order to ensure their survival. Without such schemes, there would be an increase in insolvencies among small firms which would have a negative impact on Ireland’s economy as a whole. As such, it is important that business owners take advantage of these opportunities when they arise in order to protect their businesses from financial ruin and job losses due to insolvency or bankruptcy proceedings.
The Small Company Administrative Rescue Process (SCARP) offers an invaluable service for small businesses struggling during this turbulent economic climate brought on by Covid-19. By providing simplified out-of-court debt restructuring services as well as access to professional advice throughout the process, SCARP has been able to rescue six firms from insolvency while preserving 23 jobs last week alone! If you own a small business and feel like you may benefit from this scheme then you should definitely consider taking advantage of it sooner rather than later before your situation worsens any further!