Here’s a summary of the current financial grants, loans and government help. Please click on the links for more details, and if you need more specialist advice, we suggest you get in touch with Business Wales by calling 03000 6 03000
WELSH ECONOMIC RESILIENCE FUND (ERF) – Phase 3
Businesses across Wales can now find out if they can apply for funding. Visit the online Eligibility Checker with applications open from 26th October. More details on this and more on Mitchell Meredith’s latest newsletter.
- Micro businesses (employing between 1 and 9 people) will be able to apply for up to £10,000 on the condition they match this with their own investment of at least 10%; For Tourism and Hospitality micro businesses there will be discretion for grant awards of up to 100%;
SMEs (employing between 10 and 249 people) will be able to apply for up to £150,000.
- Small businesses (up to 50 employees) will be required to match this with their own investment of at least 10% and medium businesses (between 50 and 249 employees) with at least 20% of their own funding; For Tourism and Hospitality SME’s there will be discretion for grant awards of up to 100%;
- Large businesses (employing 250+ people) will be able to apply for up to £200,000 on the condition they match this with their own investment of at least 50%.
For examples of potential suitable applications, please click HERE(https://businesswales.gov.wales/erf-phase-3-investment-examples)
Local Lockdown Business Fund
The Welsh Government is currently working with local authorities and the Welsh Local Government Association on the detail of the Local Lockdown Business Fund that will support businesses impacted by local restrictions. Further details and information on how to access this fund will be published shortly on the Business Wales website. The Local Lockdown Business Fund, worth up to £60m, will provide grants based on the Non-Domestic Rates (NDR) system to businesses who meet eligibility requirements and have been materially impacted by local lockdown.
Eligible Retail, leisure and hospitality businesses in Wales occupying properties with a rateable value of between £12,001 and £51,000 could access a grant worth £1,500.
A £1,000 grant will be available to eligible businesses that have a rateable value of £12,000 or less.
Wales Cultural Recovery Fund – Freelancer Support
- The purpose of this Fund is to support Freelancers working in the cultural sectors and facing financial challenges in the period April 2020 to March 2021 as a result of COVID-19. This fund will be targeted at freelancers who work in the four key areas of The Arts, Creative Indsutries, Arts and Heritage Events, and Culture and Heritage.
- This grant is administered by local councils. The first phase of applications is mostly closed but Mitchell Meredith strongly recommends those wishing to apply to register their interest with their relevant authority as soon as possible as the authorities have discretion on the duration of the Fund.
- For more information and details on how to apply please access the Culture Recovery Fund Eligibility Checker on the Business Wales website and click HERE(https://fundchecker.businesswales.gov.wales/culture) Also, visit Mitchell Meredith’s latest newsletter for more info.
Job Support Scheme
The new Job Support Scheme will be introduced from 1 November 2020 to protect jobs where businesses are facing lower demand over the winter months due to coronavirus (COVID-19).
Under the scheme, which will run for six months, the UK Government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.
Visit Business Wales for more info about conditions needed to qualify.
Job Retention Bonus
The Job Retention Bonus is a £1,000 one-off taxable payment to you (the employer), for each eligible employee that you furloughed and kept continuously employed until 31 January 2021.
You’ll be able to claim the bonus after 15 February 2021. You do not have to pay this money to your employee. Click here for more information & how to claim.
Coronavirus Business Interruption Loan Schemes and Future Fund extended
The UK Government is extending four temporary loan schemes that were designed to support UK businesses that are losing revenue and seeing their cashflow disrupted as a result of the COVID-19 outbreak. The schemes have been extended to 30th November 2020 for new applications.
More businesses will now be able to benefit from the:
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Coronavirus Large Business Interruption Loan Scheme (CLBILS)
- Bounce Back Loan Scheme (BBLS)
- Future Fund
For further information please visit the British Business Bank website.
Self-Employed Income Support Scheme(SEISS)
Applications for the 2nd phase of SEISS will close on 19th October, and the next round of support will be in 2 parts.
The extension will provide two grants and will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.
The first grant will cover a three-month period from the start of November until the end of January. HMRC will provide a taxable grant covering 20 per cent of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.
HMRC are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.
The second grant will cover a three-month period from the start of February until the end of April. HMRC will review the level of the second grant and set this in due course.
There are 2 new conditions:
- claimants are actively trading and intend to continue to trade
- trade is impacted by reduced demand due to the pandemic
Tax Cuts & Deferrals
- There is an extension to the temporary 15% VAT cut for the tourism & hospitality sectors until March 2021.
- In addition, business who deferred their VAT bills will be given more breathing space through the New Payment Scheme, this allows for 11 smaller interest-free payments rather than paying a lump sum in March 2021.
- There is a 12 month extension for the 11 million self-assessment taxpayers on the “Time to Pay” self-service facility, meaning payments deferred and due in January 2021, will now not need to be paid until January 2022.
- Those who took a Bounce Back Loan will have flexibility to pay back through a new Pay as You Grow flexible repayment system. This includes extending the length of the loan from six years to ten, which will cut monthly repayments by nearly half. Interest-only periods of up to six months and payment holidays will also be available to businesses.
Payment plans available for Self-Assessment Tax Liabilities
From 1 October 2020 HM Revenue and Customs (HMRC) has increased the threshold for paying tax liabilities to £30,000 for Self Assessment customers to help ease any potential financial burden they may be experiencing due to the coronavirus (COVID-19) pandemic. Click here for more info
Small Business Recovery Grant in Herefordshire
New grants of between £1,000 and £3,000 will soon be available to small businesses across the Marches to help them recover from the impact of the Covid-19 pandemic.
The grant can fund professional help or small pieces of equipment or technology. There are two funding streams one for the Visitor Economy(Tourism) sector and the other for the Wider Economy.
Grants for Town Centre Businesses in Monmouthshire
The COVID-19 Town Centre Outdoor Adaptation Grant offers businesses the chance to secure up to £8,000 towards improvements that aid social distancing as well as the environment and amenity of the county’s town centres. The council has already invited businesses and other organisations to apply, with the first grants to be awarded shortly. So far, more than 80 town centre businesses have expressed an interest in the scheme, and there’s still time for others to register, although it is highlighted that the funding available is limited and applications will be considered as received.
Grants for Businesses Forced to Close Due to Local Lockdowns
We have been unable to find details yet on the mechanism to access these grants which have been announced, but they are most likely to be administered via local council rates teams.
The press releases issued talk about including some support for small businesses that are not in rateable premises. Click here to read the article
We will naturally send you information as and when any details are published on how to apply for these.