Economic Resilience Fund – Third Phase

Economic Resilience Fund – Third Phase

The third phase of the Welsh Government’s Economic Resilience Fund (ERF) has been announced with a further £80 million of grant aid to support businesses, with £20 million of this specifically ring fenced to support tourism and hospitality businesses. 

Who can apply?

The business development grants will be open for 4 weeks from 26 October 2020 to micro businesses, SMEs and large businesses based in or employing people in Wales, with a turnover of more than £50,000 as follows:

  • Micro businesses (employing between 1 and 9 people) will be able to apply for up to £10,000 on the condition they match this with their own investment of at least 10 per cent;
  • SMEs (employing between 10 and 249 people) will be able to apply for up to £150,000 on the condition they match this with their own investment of at least 10% for small business (1-49 staff) and 20% for medium sized (50-249) business; and
  • Large businesses (employing 250+people) will be able to apply for up to £200,000 on the condition they match this with their own investment of at least 50%.

Match funding is likely to be from reserves or new funds.

The applicant must be one of the following:

  • a company registered with Companies House or the Charity Commission;
  • VAT registered; or
  • in a sector exempt from VAT with turnover above £85,000.

You can apply even if you have already received funding from ERF Phase 1 or 2 or the Non Domestic Rates Grant. The funding is to cover the period from October 2020 to 31st March 2021.

What is the funding for?

The grant funding is for revenue expenditure. Any capital expenditure could be used as part of the match funding required.

The fund is intended to support businesses in Wales with development projects:

  • to assist with recovery from the effects of the Covid-19 pandemic and future sustainability;
  • to improve the business operation from current circumstances; and
  • where possible, to help sustain and create jobs for young people (25 and under), people with disabilities and people from BAME communities.

Any project will need to address one or more of the calls to action in the Welsh Government’s Economic Action Plan:

  • Reduce carbon emissions
  • Develop innovation and entrepreneurship
  • Increase exports and trade
  • Create high quality employment, skills development, and Fair Work
  • Develop automation and digitalisation

The funding cannot be used for:

  • Funding operational running costs (utilities, rent etc.) unless directly associated to the development project
  • Settling existing debt
  • Any costs incurred before any award from the grant application
  • Redundancy costs

What type of projects will qualify?

To give you an idea, the type of projects that might be eligible for support include:

  • Supporting the costs of your staff and operation to work on the future development of your business
  • Investing in the digital capability of your business
  • Investing in new processes or systems
  • Investing in equipment
  • Investing in the skills and capabilities of your staff
  • Investing in improvements to facilities

What do I need to do?

The key requirements for an application will be:

  • A description of the planned development
  • Quotes for any required purchases
  • A high level plan to deliver the development
  • For applications over £50,000 a 12 month cashflow forecast
  • Evidence of match funding (such as bank statements, confirmation of funding letter etc.)

As a first step, businesses should see if they can access this fund using the eligibility checker at https://fundchecker.businesswales.gov.wales/erfphase3.

We are happy to advise on any aspects of an application.

For more information on any of the above, please contact Simon Tee (simon.tee@kilsbywilliams.com) or Ataf Salim (Ataf.Salim@kilsbywilliams.com)