Welsh Government's £500m COVID-19 Economic Resilience Fund - More Details Announced

Welsh Government's £500m COVID-19 Economic Resilience Fund - More Details Announced

Tuesday, 14 April, 2020

Further details about support for businesses in Wales during the coronavirus outbreak have been published.

The Economic Resilience Fund will provide additional financial support during the coronavirus pandemic and will help organisations in Wales to manage cash flow pressures. The programme will help to address gaps not met by schemes already announced by the UK Government, Welsh Government and Development Bank of Wales.

Further information about the initiative, including eligibility criteria to prepare to apply, has been released. Information about this second phase of the Economic Resilience Fund is available on the Business Wales website.

This phase, which will release £200 million of funding, will be targeted at micro businesses, SMEs and large businesses of critical social or economic importance to Wales.

The first phase saw the £100 million Development Bank of Wales' loan scheme fully subscribed in a week – all applications are being processed.

To be eligible for the second phase of support, businesses must meet criteria including:

Micro businesses, including start-ups, employing up to nine employees could be eligible for up to £10,000 of support. This includes sole traders employing staff. Businesses in this bracket could qualify 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 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 1 March 2020.
  • Are not 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.

Full details on the eligibility criteria can be found at: https://fundchecker.businesswales.gov.wales/ 

Minister for Economy, Transport and North Wales, Ken Skates said:

'‘We are making the next £200m available through the fund – a substantial amount of money. It will be available to firms who pass the eligibility criteria and is designed to help those businesses and charity organisations who are struggling with cash flow problems.'

The application process for businesses qualifying for financial support from the Economic Resilience Fund will open on Friday 17 April 2020 via the Business Wales website.

As the situation evolves, GRANTfinder will continue to report on any additional financial support measures as and when they are announced.

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