The Welsh Government announced a £1.1bn support package for the economy and public services in Wales. The package consists of cash reallocated from existing budgets and new money – already announced – from the UK Treasury.
The main thrust of yesterday’s announcement was an Economic Resilience Fund. 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 rate.
Businesses will also be able to 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 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 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.
More information is available here: https://gov.wales/new-500-million-economic-resilience-fund-launched-wales