The first tranche of the Economic Resilience Fund saw over £200 million reach businesses across Wales to support them through coronavirus. This further £100 million is to support businesses who were not eligible during Phase 1 such as social enterprises, charities and microbusinesses, or for other Welsh or UK Government schemes.
Working in the same way as Phase 1, Phase 2 will open for applications at the end of the month, however the eligibility checker has opened today to allow businesses time to prepare to make their applications.
The eligibility checker for the next phase of the ERF is available at: https://fundchecker.businesswales.gov.wales
Hannah Blythyn MS said:
“I have remained on hand to support businesses across the constituency, providing them advice and guidance on how to access funding, and the Welsh Government legislation on maintaining physical distancing in the work place. If any businesses have questions or need advice, please get in touch with me on 01352 762102 or email Hannah.Blythyn@senedd.wales.”
The eligibility criteria for micro businesses, SMEs and large businesses are as follows:
Micro businesses will be eligible for up to £10,000 of support from this phase of the fund if:
• Efforts to sustain business activities can be demonstrated;
• No funding support was agreed under phase one of the ERF or from business rate relief scheme;
• Confirmation is provided that funding from any other Welsh Government non-repayable grant funding source is not being pursued;
• In excess of a 40% reduction in turnover since 1 March 2020 has been experienced;
• Sole traders will need to be VAT and PAYE registered, as under phase one;
• For limited companies, the criteria will be expanded where two of the following are satisfied:
o VAT registered
o PAYE registered
o Annual turnover exceeds £50k;
• Not eligible for non-domestic business rate grant; and
• Operating address and employer in Wales.
SMEs will be eligible for up to £100,000 where:
• Confirmation is provided that funding from any other Welsh Government non-repayable grant funding source is not being pursued;
• In excess of a 60% reduction in turnover since 1 March 2020 has been experienced;
• Not eligible for business rate relief scheme, or if it is, the amount would be deducted from the allocation from this fund;
• Did not receive phase one ERF support /non-domestic rate relief support will be deducted;
• Operating address and employer Wales;
• A sustainable business plan exists to trade beyond the Covid-19 pandemic;
• Inability to access funding needed from a bank (including DBW and the British Business Bank) is demonstrated; and
• An undertaking that for as long as the Coronavirus Job Retention Scheme is in place, no future compulsory redundancies will be made.
Large businesses will be eligible for up to £690k in compliance with temporary State Aid rules to be notified matched by at least the same level of support from other sources where:
• In excess of a 60% reduction in turnover since 1 March 2020 has been experienced, or a 60% reduction in turnover is forecasted between the time of application and the end of the project;
• Not eligible for business rate relief, or if it is then the amount will be deducted from the amount allocated from this fund;
• Operating address and employing at least 40 people in Wales;
• A sustainable business plan exists to trade beyond the Covid-19 pandemic;
• Inability to access funding needed from a bank (including DBW and the British Business Bank) is demonstrated;
• An undertaking that for as long as the Coronavirus Job Retention Scheme is in place no future compulsory redundancies will be made; and
• Agreement to match fund support.
The Welsh Government are reviewing options available to offer further support to businesses who may not have benefited from the various schemes on offer, from the Economic Resilience Fund and Small Business grants, to loans from the Development Banc of Wales.