The latest phase of the Welsh Government’s Economic Resilience Fund has benefited from the release of a further £100million from ministers within 72 hours of launch, due to a massive demand.
More than 6,000 grant applications from small and medium sized businesses and social enterprises were received within 24 hours of the launch on Friday – an unprecedented response, revealing the scale of the challenges facing Welsh businesses.
The Fund aims to complement and fill the gaps left by UK Government schemes such as the Job Retention Scheme, with grants of up to £10,000 for micro-enterprises and up to £100,000 for SMEs and a light touch appraisal system designed to get money to businesses with the minimum of delay – as well as a new loan fund administered by the Development Bank of Wales.
Less than three weeks since the First Minister announced the intention to create the Fund, the Welsh Government has released a further £100 million, taking the grant fund to £300 million. This will supplement this latest phase of support, providing non-repayable grants to microbusinesses, SMEs and those large businesses of critical, social or economic importance to Wales.
The Fund has been warmly received by trade union and business organisations, with the Institute of Directors calling it ‘very welcome news for business owners and managers who are desperate for all the help they can get at this difficult time’. The South and Mid Wales Chambers of Commerce has called ‘the rapid response to date’ of the Welsh Government in supporting the economy of Wales ‘impressive’. The Wales TUC welcomed ‘additional funding to address the gaps’.
Minister for Economy, Transport and North Wales Ken Skates said: “We knew that even with the help offered by initiative such as the Job Retention Scheme, there was a massive need for quick access to grant funding if Welsh businesses were to survive this unprecedented economic shock. Whilst in order to make the scheme quick and simple we needed to take tough decisions over eligibility – like requiring businesses to be registered for VAT as a way of having to check on their trading history – it is clear from the level of response received that the Economic Resilience Fund is plugging a gap in UK Government support and providing much needed financial reassurance to many businesses at this challenging time. We will continue to review support and consider how we can develop it over the coming days.
“The rate of applications has been massive and unprecedented. This is the second time in a matter of weeks that access to Welsh Government funds aimed at easing cash flow pressures for Welsh business have quickly reached capacity, and we have responded with pace to release a further £100m into this phase of the fund.
“In these difficult and demanding economic times we have worked hard to free up resources to create such a large Fund despite the huge demands on our budget, and to strike a balance between supporting as many enterprises as possible and making a meaningful contribution to each one’s survival, as well as asking each recipient to sign up to the principles of the economic contract.
“Though we applaud much of what the UK Government has done, there is an urgent need to see more of the promised lending guaranteed by the UK Government getting to the front line. The UK Government must continue to support and press the high street banks to be much more responsive to the needs of our businesses at this difficult time.”
Finance Minister Rebecca Evans said: “The Economic Resilience Fund is part of more than £2bn of support that we have made available to help businesses and charities during these incredibly difficult times.
“We know that support for business is crucially important but whilst we are doing everything we can in Wales to plug any gaps and provide the best possible financial support to businesses, it is clear there are further steps that the UK Government needs to urgently take.”
The Economic Resilience offers financial support to help businesses, charities and social enterprises deal with the coronavirus crisis and will be vital in helping organisations manage cash flow pressures. It is a unique additional funding stream for Wales and was designed to address gaps not currently met by schemes already announced by the UK Government, Welsh Government and Development Bank of Wales.
The first stage of the Fund saw the £100 million Development Bank of Wales’ loan scheme fully subscribed in little more than a week. Applications are currently being processed and some businesses have already received funding. It is anticipated that the Development Bank will have processed all applications received within the month.
To ensure that money reaches businesses as quickly as possible more than 120 additional Welsh Government and Business Wales staff have been diverted onto processing applications and supporting businesses and organisations in this latest stage of the Fund.
Applications open for emergency financial support from Economic Resilience Fund
BUSINESSES in Wales impacted by the rapid spread of the Omicron virus can now apply for emergency financial support from the Welsh Government’s Economic Resilience Fund (ERF).
Economy Minister Vaughan Gething previously said £120 million would be available for retail, hospitality, leisure and tourism business and their supply chains affected by the move to alert level 2 announced by the First Minister on Wednesday 22 December.
Eligible businesses can apply for grants of between £2,500 to £25,000, with grants dependent on their size and number of employees.
The application window will be open for two weeks, with payments starting to reach businesses within days.
Economy Minister, Vaughan Gething, said:
“Following positive engagement with businesses, trades unions and other partners, we recently changed the eligibility criteria for the ERF support. The ERF grant is a Wales-only top up payment that currently supports eligible businesses who have seen a 60% drop in their income between December and February compared with the same period two years ago. The new criteria means that businesses in these sectors who have seen a 50% reduction in their turnover will now also be able to access the ERF.
“This means more businesses will receive more support from the Welsh Government.”
Non-essential retail, hospitality, leisure and tourism businesses in Wales can also receive support from the Non Domestic Rates (NDR) linked grant which is being administered by local authorities. Businesses will be entitled to a payment of £2,000, £4,000 or £6,000 depending on their rateable value.
Local authorities are also administrating a discretionary fund for sole traders, freelancers and taxi drivers and businesses that employ people but do not pay business rates. Last week this was doubled to £1,000.
The Welsh Government has provided in excess of £2.5bn funding to Welsh businesses since the start of the pandemic. Focused particularly on backing small businesses and Welsh communities, it’s targeted approach has helped protect in excess of 160,000 Welsh jobs which might otherwise have been lost.
Apply for Economic Resilience Fund support here:
Businesses will soon be able to access funding from the Welsh Government
BUSINESSES in Pembrokeshire which have been impacted by the move to Alert Level 2 Covid-19 measures in Wales will soon be able to register or apply for Welsh Government funding.
The First Minister announced a £120m package of support for nightclubs, events, retail, hospitality, leisure and tourism businesses and their supply chains, impacted by the move to Alert Level 2.
An eligibility checker for businesses has now gone live.
Businesses are urged to check their eligibility at: https://fundchecker.businesswales.gov.wales/businesssupport?_ga=2.234856926.1944247233.1641292011-360841121.1641292011
The above link also features further information and a series of FAQs about the latest round of support.
The funding will take the form of three elements.
Non Domestic Rates (NDR) linked funding of up to £6,000.
Retail, hospitality, leisure and tourism business who pay Non Domestic Rates will be entitled to a payment of £2,000, £4,000 or £6,000 depending on their rateable value.
Businesses will need to re-register their details with Pembrokeshire County Council through an online process in order to receive their payments.
The Council will also deliver a discretionary fund to support sole traders, freelancers and businesses who don’t pay rates, with funding of £500 – £2000.
The Local Authority discretionary fund will be via a short application process with sole traders, freelancers and taxi drivers able to apply for £500 and businesses that employ people but do not pay business rates will be able to apply for £2,000.
Pembrokeshire County Council plans to open the schemes on Monday 10th January for the NDR related fund and Monday 17th January for the Discretionary fund.
See notes below for further information on the way the NDR linked grant and discretionary fund will be allocated.
The third element of the funding is a reopening of the Welsh Government’s Economic Resilience Fund (ERF).
On top of NDR based funding, this will see funds of up to £25,000 made available for severely impacted hospitality and leisure businesses – and their supply chains.
As with previous ERF rounds, this will support businesses who have seen a reduction in their turnover of more than 60%.
Details of the application and registration process will be published on the Authority’s Business Advice and Support pages: https://www.pembrokeshire.gov.uk/business-advice-and-support
The funding package is designed to support businesses impacted by the spread of Omicron through the period 13 December 2021 to 14 February 2022.
Please note that as a result of the new emergency support packages, the Welsh Government is withdrawing its £35m Business Support Fund, announced in November, in order to process emergency payments as soon as possible.
Any expressions of interest received will be notified of this directly.
£120m financial support for businesses in Wales impacted by Omicron
BUSINESSES in Wales impacted by the rapid spread of the Omicron virus will be eligible for emergency financial support under a new Welsh Government support package.
The Economy Minister, Vaughan Gething, has announced the details of the £120m funding which will be available for retail, hospitality, leisure and tourism business and their supply chains affected by the move to alert level two, as announced by the First Minister on Wednesday 22 December.
Under the latest package, retail, hospitality, leisure and tourism business who pay Non Domestic Rates will be entitled to a payment of £2,000, £4,000 or £6,000 depending on their rateable value. Businesses will need to re-register their details, through a quick and easy online process, with Pembrokeshire County Council in order to receive their payments.
Registration will open via local authority website from the week commencing January 10, 2022
The Welsh Government has decided to extend this support to non-essential retail so that smaller shops, and Travel Agents will be supported and our high streets can continue to thrive. In England, support is not available to non-essential retail.
In addition, impacted hospitality and leisure businesses and their supply chains will be able to apply for top up funding from a new Economic Resilience Fund (ERF). Eligible businesses can apply for grants of between £2,500k – £25,000, with grants dependent on their size and number of employees. The application window for ERF will open in week commencing 17th January 2022 with payments starting to reach businesses within days.
Local Authorities will also administer a Discretionary fund for business and sole traders who do not pay rates. The fund will provide £500 to sole trader and freelancers and £2,000 to employing businesses in impacted sectors. Further details to follow on business.wales.
An eligibility checker which will help businesses to gauge how much they can expect to receive under the new support package will be available on the Business Wales website by the start of 2022.
Economy Minister, Vaughan Gething, said: “We fully understand the continued challenges faced by businesses, however we are facing a very serious situation in Wales. A wave of infections caused by the new, fast-moving and very-infectious omicron variant is headed our way, this means taking early action to try and control its spread – and limit the impact on Welsh businesses.
“Since the start of the pandemic, we’ve provided over £2.2bn of support to businesses throughout Wales to help them manage their way through difficult circumstances.
“We will continue to monitor the impact of the spread of Omicron on businesses in Wales, and will consider whether additional emergency funding is needed in the new year.”
Business.Wales will be updated with details, frequently asked question and support guidance.
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