COVID-19 Economic Resilience Fund Launched For Wales

This is our fifth update on COVID-19 guidance and follows First Minister Mark Drakeford's announcement yesterday a new £500 million fund to provide extra support to the Welsh economy, businesses and charities experiencing a sharp drop in trading as a result of the coronavirus (COVID-19) pandemic.

Please do contact us for help, we are keeping the offices open be arrangement for delivery of records and are keeping in touch with clients via telephone, post and email. 

Also, please be aware of scams as there will be texts, phone calls, letters and emails offering support that may be fraudulent.

If you need to contact HMRC to agree time to pay a tax, kindly note HMRC has changed its COVID-19 helpline number to 0800 024 1222.

Yesterday's announcement was as follows:

The Economic Resilience Fund aims to plug the gaps in the support schemes already announced by the UK Government, including the Job Retention Scheme and the Self-Employed Income Support Scheme, which will guarantee 80% of people's wages and income.

The new £500 million Welsh fund will support firms of all sizes, including social enterprises, with a focus on those which have not already benefited from the coronavirus grants already announced by Welsh Government.

The £500 million fund is made up of two main elements:

• a new £100 million Development Bank of Wales fund will be available for companies 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 £400 million emergency pot providing:

1. 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.

2. 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 from next week.

3. 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.

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.

The new fund builds on the £1.4 billion business support package announced by Welsh Government on 18 March, which provides a year-long rate relief holiday for all but the largest premises in the retail, hospitality and leisure sectors and grant-support for more than 70,000 small businesses.

We will update you as more details are announced.