For those making an application to the Welsh Government for grants, you should familiarise yourselves with the guidance available here.
Economic Resilience Fund
The Economic Resilience Fund has now closed, to help businesses locate a varied range of other support available to them to get through this difficult period take a look at the COVID-19 Business Support Finder pages we’ve created here.
Development Bank of Wales
For details of the financial support available from the Development Bank of Wales please visit their website:https://developmentbank.wales/
£100 million Development Bank of Wales loan scheme fully subscribed in first week
The COVID-19 Wales Business Loan Scheme is fully subscribed after more than 1,500 applications were received in just over one week.
The £100 million scheme was launched on Monday 30 March as part of the Welsh Government’s £500 million Economic Resilience Fund to support businesses in dealing with coronavirus outbreak.
The first loans were approved within three days of the fund launch, with the first loans reaching applicants by the end of last week.
Bounce Back Loans
The COVID-19 Bounce Back Loan Scheme enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% a year.
- up to £50,000 loan – loans will be from £2,000 up to 25% of a business’ turnover or £50,000, whichever is lower
- 100% guarantee – the scheme provides the lender with a government-backed, full guarantee (100%) against the outstanding facility balance, both capital and interest
- interest rate – the UK Government has set the interest rate for this facility at 2.5% per annum, meaning businesses will all benefit from the same, low rate of interest
- interest paid by the UK Government for 12 months – the UK government will make a Business Interruption Payment to the lenders to cover the first 12 months of interest payable, so businesses will benefit from no upfront costs
Firms will be able to access these loans through a network of accredited lenders.
Further details can be found on the GOV.UK website.
Business Interruption Loan Scheme
A new temporary Coronavirus Business Interruption Loan Scheme, covering a variety of different products such as loans, overdraft, invoice finance and asset finance, delivered by the British Business Bank, has launched on the 23 March to support primarily small and medium sized businesses to access bank lending and overdrafts. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value. Businesses can access the first 12 months of that finance interest free, as government will cover the first 12 months of interest payments.
Further details can be found at: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/
Apply for the coronavirus Future Fund
The Future Fund will provide government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.
These convertible loans may be a suitable option for businesses that rely on equity investment and are unable to access the Coronavirus Business Interruption Loan Scheme.
The fund will be delivered in partnership with the British Business Bank.
You’re eligible if your business:
- is based in the UK
- can attract the equivalent match funding from third-party private investors and institutions
- has previously raised at least £250,000 in equity investment from third-party investors in the last 5 years
The fund will open to applications on 20 May 2020, please visit the GOV.UK website for further details.
More detailed guidance is available on the British Business Bank website.