The new Economic Resilience Fund will provide additional financial support during the coronavirus pandemic and will help organisations in Wales to manage cash flow pressures.
The fund will help to ‘address some of the gaps’ not met by schemes already announced by the UK Government, Welsh Government and Development Bank of Wales.
To be eligible for this second phase of support, businesses, charities and social enterprises, must meet criteria including:
- Micro businesses, including start-ups, employing up to nine employees could be eligible for up to £10k support. This includes sole traders employing staff. Businesses in this bracket could qualify for support from the fund if they:
- Have experienced more than 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 business rate relief grants
- Are VAT registered or exempt from VAT
- Operating address is in Wales and have employees in Wales
- 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 more than a 60% reduction in turnover since 1 March 2020
- Are not be eligible for 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.
The application process for businesses qualifying for financial support from the Economic Resilience Fund will open on Friday, April 17 via the Business Wales website.
“This is another important step designed to help those businesses and charity organisations who are struggling with cash flow problems,” said Ken Skates, Minister for Economy, Transport and North Wales.
“The fund will go live for applications on Friday (17th April), but I must reiterate the importance of those considering applying to go through the guidance to establish whether they are likely to be eligible.
“This fund will reach a significant number of businesses, charities and social enterprises, but it’s clear it won’t reach all.”
Further details and how to apply can be found here.