Financial Support and Grants

Financial Support and Grants

Grant Funding

The Welsh Government has introduced 2 separate grant schemes, the Non Domestic Rates(NDR) grant and the Economic Resilience Fund.

The Covid-19 non-domestic rates (NDR) grant schemes will be closing to new applications at 5pm on 30th June 2020. If you are eligible and you have not already applied, please ensure that you apply via your local authority before this date. Any applications received after 5pm on 30 June 2020 will not be considered.

For those making an application to the Welsh Government for grants, you should familiarise yourselves with the guidance available here.

Welsh Government Business Grants

The Welsh Government is working in partnership with local authorities to deliver the grants to qualifying businesses. This grant is for Business Rate paying premises only and is split into 2 parts:

Grant 1: A grant of £25,000 is being made available for retail, leisure and hospitality businesses occupying properties with a rateable value of between £12,001 and £51,000. This means businesses that occupy properties such as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, hotels, guest and boarding premises and self-catering accommodation.
 
Grant 2: A £10,000 grant to all businesses eligible for small business rates relief (SBRR) in Wales with a rateable value of £12,000 or less.

Please note that the multiple property restriction which applies to Small Business Rates Relief also applies to this grant. Therefore, the same ratepayer may only receive the grant for a maximum of two properties in each local authority area.

And

A £10,000 grant to all ratepayers eligible for charitable relief and Community Amateur Sports Clubs (CASC) relief, operating in the retail, leisure and hospitality sectors occupying properties with a rateable value of £12,000 or less. Local authorities have discretion to provide grants to not-for-profit bodies they consider to be operating for charitable purposes but aren’t currently receiving charitable relief or CASC relief. This discretion will only apply to not-for-profit organisations who are in receipt of or have entitlement to discretionary rates relief and operate in the retail, leisure or hospitality sectors.

The multiple property restriction applied to the Small Business Rates Relief scheme applies to this grant. Therefore the same ratepayer may only receive the grant for a maximum of two properties in each local authority. This multiple property restriction also applies to charities and CASC.

Further details of the Scheme and links to Local Authority Websites to apply is available here: COVID-19 Grants


Economic Resilience Fund has been paused.

In its first week the second phase of the Economic Resilience Fund received almost 9,000 requests for support. Due to the scale of demand, Welsh Government increased the amount of funding for this phase to £300 million. 

The Fund is now paused following the very large number of applications to give Welsh Government an opportunity to consider what further support businesses, charities and social enterprises need.

For information on funds relating to the culture, creative and sports sector click 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.