Welsh Government Economic Resilience Fund – Third Phase Important Update

Welsh Government Economic Resilience Fund – Third Phase Important Update

Following on from the information we released on 12th October, we have received further guidance in connection with Welsh Government funding.

The key points are:

  • Whilst the media headlines have broadcast a £300m fund the effective fund for these project applications is £100m with £20m of that earmarked for hospitality type businesses.
  • The fund is open to applications in the week commencing 26th October. They have not committed to the specific day this will open for applications.
  • It has now been confirmed that the fund will be allocated on a  “first come first serve” basis so we advise you to apply as soon as you can. We have been made aware that currently the Welsh Government has not received a high level of enquires on this but, based on other phases, its highly likely the money may be fully allocated within a week of the fund opening.
  • A director or authorised officer of the company must apply online. This means we cannot complete the application for you. We can however help and advise you. We have been advised that there will be guidance provided online to take you through the application process.
  • Remember that this is geared towards revenue costs aimed at projects that safeguard jobs or develop the company through COVID. You can incur capital expenditure within a project but this cost will not be funded. You should also remember that anything you commit to as project costs will need to be spent, otherwise its likely any grant award will need to be repaid in the future.
  • Project applications will be appraised online.
  • Part of the appraisal process will be to assess value for money. The Welsh Government has confirmed a general cap at £2500 per job for SMEs and £1000 per job for large companies. So, for example, if you argue the project safeguards 20 employees the maximum grant might be £50,000. You can apply for more and if they consider a project has high merits they might offer more. However conversely they might only offer the minimum funding and ask you to commit to the rest. As the process is online there is less chance to fully communicate project benefits so the narrative entered online will be key to a successful application.

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