The Welsh government has announced a £500m Economic Resilience Fund, partly to help small businesses blighted by coronavirus.
The Economic Resilience Fund aims to plug 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 per cent of people’s wages and income.
The new £500m Economic Resilience Fund will support firms of all sizes, including social enterprises, with a focus on those which have not already benefited from the coronavirus business grants already announced by Welsh government.
The £500m Economic Resilience Fund is made up of two main elements:
- A new £100m 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 £400m 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 from next week
– 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 new fund builds on the £1.4bn business support package announced by Welsh government on March 18, 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.
First Minister Mark Drakeford said: “There are elements of the economy, businesses and charities in Wales facing insolvency because fixed and operating costs – rent, residual salary costs, leasing charges for vital equipment and maintaining operations – cannot be met during this crisis.
“The pace at which the coronavirus pandemic is affecting our economy is extraordinary. Now, more than ever, government needs to do all it can to support the economy and business.
“This package of support provides further assurance to firms, charities and social enterprises that we will do just that – help them deal with the economic impact of the pandemic.