UPDATE: This has opened early and is available now!
The application process for the new Economic Resilience Fund will open tomorrow, Friday 17 April 2020.
The fund will target microbusinesses, SMEs and large businesses with critical social or economic importance to Wales, and provide additional financial support to help organisations manage cash flow pressures. It will help to address gaps not met by schemes already announced by the UK Government, Welsh Government and Development Bank of Wales.
To be eligible for the support you must meet the following criteria:
- Micro businesses employing up to nine employees could be eligible for up to £10k support if they:
- Have experienced in excess of a 40% reduction in turnover since 1 March 2020
- Can demonstrate that efforts have been made to sustain business activity
- Are not pursuing other forms of Welsh Government non-repayable grant funding support
- Are not entitled to the business rate relief grants
- Small and medium sized firms with between 10 and 249 employees could be eligible for grants of up to £100,000 if they:
- Have experienced in excess of a 60% reduction in turnover since the first day of March
- Are not be eligible for the business rate relief grants, or if they are, that amount would be deducted from their allocation from this fund
- Have a sustainable business plan to trade beyond the Covid-19 pandemic
- Confirm no future compulsory redundancies will be made as long as the Coronavirus Job Retention Scheme is in place
- Are not pursuing any other form of Welsh Government non-repayable grant funding support
Funding will also be available to support large businesses with more than 249 employees. Applications will be considered on a case-by-case basis to consider where funding can be deployed most effectively to compliment other sources of support.
Although this is only for guidance and Business Wales have informed us that claimants shouldn’t be put off by questions asked. Decisions are going to be made on a point-based system and you may still benefit from the support available.
They have informed us:
- The economic value of the business to the community will impact your claim. For example, how many jobs you provide.
- That if you have had a bank loan, it could impact on your eligibility, but you currently don’t need to prove you have been turned down for loans.
- For the micro entity £10k grant, you currently need to be VAT registered or VAT exempt.
If you are eligible and would like to apply, you will need to have the following information ready:
- VAT registration Number
- Company Registration Number: (if applicable)
- The Sector the business works in
- Number of Employees (Full Time)
- Annual Turnover
- Bank account details – Bank, Sort code and Account number
- Which COVID-19 support funds you have applied for or been accepted for.
To find out if you are eligible, visit the Eligibility Checker here. The fund will be made available on a first come, first served basis.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.