Economic Resilience Fund

Frequently Asked Questions
 

What is the purpose of the funding package? 
The ERF will provide support in the form of cash grants for businesses, social enterprises and charities and associated supply chain businesses that have experienced a material negative impact as a result of ongoing COVID-19 restrictions. The grants will help meet operating costs (excluding staff wages) for the period 1 May 2021 to 30 June 2021.


Who is able to apply? 
The ERF will support businesses that are either:
a) Forced to remain closed by on-going restrictions between 1 May 2021 and 30 June 2021
b) Unable to open indoors between 1 May 2021 and 17 May 2021
c) A venue which caters exclusively for weddings and events with a regulatory restriction capacity of 30 guests
d) A supply chain business that generates 60% or more of its sales revenue from businesses falling into categories a), b) and/or c)
 

And (applies to all):
Have experienced a material negative impact through reduced turnover of 60% or more in May and June 2021 as compared to May and June 2019 caused directly by on-going COVID-19 restrictions.


What are the key aims of the support available? 
The key aims are to support businesses to cover their operating costs which support business survival and safeguarding jobs. As a condition of funding you will be expected to safeguard the jobs for a minimum of 12 months.


How will the funding be delivered?  
For applicant businesses with an annual turnover above £85k, the funding will be delivered through an online application and administered through the Welsh Government. Eligible businesses with an annual turnover below £85k will need to apply via their local authorities. Information on how to apply (and links to the relevant page on each local authority website) can be found on the Business Wales website.


How much can I apply for? 
For eligible businesses the package of support will provide the following grant awards based on the number of Full Time Equivalent Posts:

 

 

Businesses partially closed and in transition and supply chain businesses

Wedding and venues for event space accommodating more than 30 guests (ineligible for CRF)

Businesses forced to close throughout May and June 2021

1-3 FTE

£2,500

£3,500

£5,000

4-9 FTE

£5,000

£7,000

£10,000

10-49 FTE

£7,500

£12,000

£15,000

50-99 FTE

£10,000

£15,000

£20,000

100+ FTE

£15,000

£20,000

£25,000

 

When can I apply? 
Applications will be open at 10am on the 24 May 2021 for the Welsh Government administered element of the scheme (for eligible businesses with an annual turnover above £85k). 

Applications for the Local Authority Administered element of the scheme will be open week commencing the 31 May 2021.


What is the deadline for applications? 
The applications will be open for 2 weeks or until the fund is fully subscribed, the Local Authority administered applications will be open week commencing the 31 May and will remain open until the funds are fully subscribed.


What period will the funding cover? 
Funding is to cover the period from 1 May 2021 to 30 June 2021. 


What time period do I need to show that I have had a 60% drop in turnover?
The turnover drop should be in comparison to the same time period in 2019 (May / June 2019 ), or if you are a new business which started trading after that date then a broadly comparable 2 month period where trading was allowed.

You will need to estimate the drop in turnover for May / June 2021 to calculate the expected turnover drop.


What information will I need to complete the Application?
On the final page of the checker there is a list of information you will need to have to complete the application. This includes:

  • VAT registration Number (If applicable)
  • Company Registration or Charity Commission Number (if applicable)
  • The Sector the business works in
  • Number of  Staff (headcount and Full Time Equivalent) including those on Furlough
  • Annual Turnover
  • Bank account details – Bank , Sort code and Account number
  • Which COVID-19 support funds you have applied for or been accepted for.


What is the difference between Headcount and FTE for Staff?
Headcount is the total number of people employed through PAYE.
FTE is the number of Full time staff working at least 30 hours per week. If a member of staff works less than 30 hours you should could them as part time so 0.5 of a job. If the job is less than 15 hours per week you should round up the hours to make 30 as a single FTE.

Example – Business employs 16 staff, 10 of which work 36 hours a week and 6 which work 18 hours per week. The headcount is 16, and the FTE is 13 as the 6 staff are 0.5 each.


What grants are included in totalling of all Grants received in the last 12 months that cannot exceed 100% of overall turnover for the same period?
An application can’t receive more in total grant aid from the various schemes listed below in this financial year than they turned over in the last full financial year, or proportionally estimated for those new businesses that do not a full years accounts.

Schemes forming the total of grant aid:

  • ERF Phase 1
  • ERF Phase 2
  • ERF Phase 3
  • Non Domestic Rates (NDR) linked grants
  • Local authority Covid-19 Discretionary Grants
  • Job Resilience Scheme
  • Non Domestic Rates Firebreak Grant
  • Non Domestic Rates Firebreak Discretionary Grant
  • Sector Specific Fund 1
  • Sector Specific Fund 2
  • Cultural Recover Fund
  • Third Sector Fund
  • Sport Wales Funds


If successful, when will I receive the funding? 
Decisions for applications will be made on an ongoing basis once the fund is open, the intention is for decisions to be made within 6 weeks of the closing date of the fund.


I have already received funding from either the Welsh Government Economic Resilience Fund, the Non Domestic Rates (NDR) linked grant, Cultural Recovery Fund, ERF Restrictions Fund or other Welsh Government grant funds, can I still apply? 
Yes for the majority of previous funds, however if you received funding from fund which apply to the same time period (1 May – 30 June 2021) such as the extended Cultural Recovery Fund or the Be Active Wales Fund, you are not eligible for this fund. 


Is there a requirement for match funding? 
No, this is an emergency fund intended to support your business survival and safeguard jobs.


Do I need to provide business accounts? 
No.


What is the Economic Contract? 
The Economic Contract is part of the Welsh Government’s “Prosperity for All - Economic Action Plan”. It is designed to enable the Welsh Government to develop a new and strengthened relationship with organisations and to drive inclusive growth and responsible business behaviours, including increasing the availability of fair work, green growth and climate resilience. It means that companies receiving support commit to a something for something approach that is built firmly on the principles of collaboration. 


Will this fund cover redundancy costs?  
No. The fund is intended as a means for businesses / organisations to maintain employment and will not cover any costs associated with redundancy.

The Job Retention Scheme (also known as the furlough scheme) has now been extended to March 2021 and more employees are eligible. As of 1 November, workers can be furloughed for all or part of their usual hours, and you can claim for anyone employed on 30 October 2020 with a Pay As You Earn (PAYE) RTI submission between 20 March 2020 and 30 October 2020. 

Your employees can be on any type of contract, including a zero-hour contract or a temporary contract, and foreign nationals and agency workers are eligible. The scheme covers 80% of an employee’s salary for usual hours not worked (up to £2,500). 

Claims can be submitted up to 14 days in advance, and you will receive the payment and must pass this on to your employee. The full details of the scheme and information on how to claim are here: https://www.gov.uk/government/collections/coronavirus-job-retention-sch…

Please ensure you furlough all eligible staff for all their usual hours not worked to minimise income loss.  


What monitoring will be undertaken? 
There will be a post completion monitoring exercise undertaken after the end of the year and you will be required to report on the activities undertaken with the funding received and how the funding has supported your organisation.