Between 30 and 40 small businesses have been affected and around 200 jobs impacted following the fire. Under the scheme, businesses can apply for up to €30,000 in funding, with an initial payment of up to €5,000 being made available while the final details are completed.

The blaze broke out at the old jute factory site on May 9, with fire crews from across Waterford City and towns and the neighboring county of Kilkenny battling the fire overnight.

The incident was eventually brought under control last Sunday afternoon, but the building was extensively damaged, with asbestos contamination later identified at the site. Cleanup operations are continuing and are expected to continue into next week.

Additional support is also being provided through Microfinance Ireland, with dedicated loans of between €2,000 and €50,000 to become available for impacted micro businesses from next week.

The scheme will offer a fixed interest rate of 5.5% APR, no fees or hidden costs, and a six-month repayment moratorium to help businesses facing immediate cash flow difficulties, according to Government officials. It was approved at a special Cabinet meeting on Friday afternoon.

A meeting involving affected business owners, Government representatives, and Waterford City and County Council took place earlier this week.

Peter Burke, the enterprise minister, outlined that the Government has “responded rapidly” to the aftermath of the fire and says the new scheme will help businesses “get back on their feet and start trading again". 

He noted that the Tycor Business Centre was “a hugely important part of the local economy”.

Minister of State Mary Butler described the incident as “devastating” and said the impact has been “far reaching” for local businesses, social enterprises, and community groups.

Meanwhile, Minister of State John Cummins said the supports will provide “comfort and clarity” to business owners affected by the fire, describing the situation in Tycor as “unprecedented”.

In a statement the council said that clean-up operations will continue throughout the weekend on the external areas of private houses and gardens at Tycor Avenue, Griffith Place, and Ard na Greine.

The next phase of work will involve the controlled removal of the partially collapsed roof structure along Tycor Avenue.

“Structural engineers, specialist demolition contractors, and asbestos contractors have been engaged by the Causeway Group (owners) to carry out the required structural assessments and to develop appropriate design methodologies for the works,” the statement continued.

“It is currently planned that these specialist demolition works will take place over the weekend under the supervision and direction of the appointed structural engineers.” The Health and Safety Authority (HSA) has been notified of the planned works.

Air monitoring will also be conducted throughout the works to provide ongoing reassurance and support the safe management of the operation.