The £500m fund will support firms of all sizes, which include social enterprises, with a focus on those which have not already benefited from coronavirus grants.
The Economic Resilience Fund aims to improve areas in support schemes that have been already announced by the UK Government; the Job Retention Scheme and the Self-Employed Income Support Scheme, which will guarantee 80% of people’s wages and income.
The new £500 million Welsh fund will support firms of all sizes, including social enterprises, focusing on those businesses who have yet to benefit from the COVID grants announced by the Welsh government.
The £500 million fund has 2 main elements:
- A new £100 million Development Bank of Wales Fund will be available for those companies experiencing cash flow issues as a result of the coronavirus and will provide loans of between £5,000 and £250,000 with favorable interest rates.
- Businesses will also be able to benefit from a £400 million emergency pot providing:
- Grants of £10,000 for micro-businesses employing up to 9 people. This includes sole traders employing staff. Qualifying businesses will be able to apply by mid-April.
- Grants of up to £100,000 for small and medium sized firms with between 10 and 249 employees. Qualifying businesses will be able to apply from next week.
- Support for the larger Welsh companies, which are of critical social or economic importance to Wales. This element will be open to qualifying businesses within the next 2 weeks.
The £500 million Economic Resilience Fund will support those businesses which have been forced to temporarily cease trading – to go into “hibernation” – or which need a cash-flow support system to adapt to a remote way of working.
The new fund constructs on the £1.4 billion business support package announced by Welsh Government on 18 March, which provides a year-long rate relief holiday for all but the largest premises in the retail, hospitality and leisure sectors and grant-support for more than 70,000 small businesses.
This £500 million package will be providing vital assistance to thousands of firms and third sector organisations, which normally rely on trading income.