Further support: Welsh Government Economic Resilience Fund

Further support: Welsh Government Economic Resilience Fund

For those of our clients based in Wales, more detail was announced by the Welsh Government (WG) on Good Friday, regarding the second part of the funding under the Economic Resilience Fund. This is a £200m grant fund.

You will have seen that the first part of the support, a £100m loan fund administered by the Development Bank of Wales (DBW), evaporated very quickly and has now been fully allocated. This was dealt with on a first come first serve basis. If you did miss out on this fund then you should remember that normal funding offered by the DBW is still available. Whilst this might not be as cheap as the CBILs funding, it will be quicker to access.

This second fund appears to be non-repayable grant money rather than the repayable loans under the first fund. However, from the tone of the press release it is clear that the WG feel this funding will not reach everyone. We think this means it will be oversubscribed. They are calling for more support from the UK Government. You will have seen the ongoing problems over the CBILSs scheme – it’s not currently providing funds into the market. We expect more to be done to free up funds under this scheme if the lockdown extends further.

The application process will open on Friday 17th April on the Business Wales website and everybody can apply for this funding. The key criteria outlined by WG for an application are as follows:

“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 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 be 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 the first day of March
  • 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 be 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.”

In the past, WG grants have been awarded to the most deserving cases based on their criteria. There was a certain competitive element to it. The WG have not spelt out how they will allocate funds if the fund is oversubscribed. If you wish to apply, our advice would be to ensure you make an application on Friday 17th April as soon the application process is opened. In addition, between now and then, ensure you have met and can provide the evidence for the criteria mentioned above. Please contact us if you need support with this process.

We will continue to monitor this situation closely and provide updates as they happen. In the meantime, Please call us for specific advice on your circumstances – 01633 810 081 or email us at info@kilsbywilliams.com