Mark Drakeford, First Minister, this week set out a further package of support for Welsh Businesses. A new £500 million fund has been set up and is primarily aimed at supporting those firms who would not qualify for previously announced support.
Launching yesterday, a new £100m Development Bank of Wales fund will be available for companies who are experiencing cash flow problems as a result of the pandemic and will provide loans of between £5,000 and £250,000 at favourable interest rates.
Businesses will also be able to benefit from a £400m emergency pot providing:
- Grants of £10,000 for micro-businesses employing up to nine people.
- Grants of up to £100,000 for small and medium sized firms with between 10 and 249 employees.
- Support for larger Welsh companies, which are of critical social or economic importance to Wales.
The £500 million Economic Resilience Fund will support businesses forced to temporarily cease trading – to go into “hibernation” – or which need cash-flow support to adapt to a remote way of working.
More details can be found here: –
This scheme, partly funded by restricting rate relief on larger properties in Wales, much to Tesco’s ire, at first glance looks promising.
Economic Resilience Fund
Businesses can also benefit from a £400 million emergency pot providing:
grants of £10,000 for micro-businesses employing up to nine people. This includes sole traders employing staff. Qualifying businesses will be able to apply by mid-April.
grants of up to £100,000 for small and medium sized firms with between 10 and 249 employees. Qualifying businesses will be able to apply by mid-April.
support for larger Welsh companies, which are of critical social or economic importance to Wales. This element will be open to qualifying businesses within the next two weeks.
Details of the application process and eligibility are being finalised and will be published shortly.
I will reserve judgement until the details of eligibility are published, but hopefully this will address the businesses who missed out on the first wave of support.
More information has also emerged regarding the grants for businesses registered to pay business rates in Wales. Initial letters have already been issued in Neath Port Talbot and Bridgend. Click below for details.
Grant 1: A grant of £25,000 is being made available for retail, leisure and hospitality businesses occupying properties with a rateable value of between £12,001 and £51,000.
This means businesses that occupy properties such as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, hotels, guest and boarding premises and self-catering accommodation.
Grant 2: A £10,000 grant to all businesses eligible for small business rates relief (SBRR) in Wales with a rateable value of £12,000 or less.
Please note that the multiple property restriction which applies to Small Business Rates Relief also applies to this grant. Therefore, the same ratepayer may only receive the grant for a maximum of two properties in each local authority area
Support for the self-employed
In his speech revealing the state aid to be provided to the self-employed, Rushi Sunak said “The government will pay self-employed people, who have been adversely affected by the Coronavirus, a taxable grant worth 80% of their average monthly profits over the last three years, up to £2,500 a month”.
Below is an extract from the HMRC published guidelines.
Who can apply
You can apply if you’re a self-employed individual or a member of a partnership and you:
have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
traded in the tax year 2019-20
are trading when you apply, or would be except for COVID-19
intend to continue to trade in the tax year 2020-21
have lost trading/partnership trading profits due to COVID-19”
The full text is here:-
I cannot imagine the paperwork involved to enforce/verify/audit that little gem. Adversely affected covers a lot more ground than lost profits.
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