Welsh Government launch Economic Resilience Fund

The Welsh Government has announced a £500 million fund to provide extra support to the Welsh economy, businesses and charities experiencing a sharp drop in trading as a result of the coronavirus (COVID-19) pandemic.

The Economic Resilience Fund aims to plug the gals 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 has not already benefitted from the coronavirus grants already announced by Welsh Government.

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 rates
• 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 £500 million Economic Resilience Fund will support businesses forced to temporarily cease trading - to go into "hibernation" - or which need cash-flow support to adapt to a remote way of working.