A further package of business support has been made available by the Welsh Government to support businesses with a turnover of less than £85,000 that have been adversely impacted by COVID-19 restrictions in May and June.
Note – if your turnover is greater than £85,000 you may be eligible for the Economic Resilience Fund (‘ERF’) that opened recently and was the subject of my email dated 25th May. You have until Monday 7th June to make an application via the Business Wales website here: https://fundchecker.businesswales.gov.wales/businesssupport
For businesses with a turnover of less than £85,000, the ERF will provide support in the form of cash grants for businesses that have experienced a material negative impact as a result of ongoing COVID-19 restrictions. Specifically, the ERF will support businesses that are either:
- forced to remain closed by the ongoing restrictions between 1 May 2021 and 30 June 2021;
- unable to open indoors between 1 May 2021 and 17 May 2021;
- a venue which caters exclusively for weddings and events with a regulatory restriction capacity of 30 guests; or
- a supply chain business that generates 60% or more of its sales revenue from businesses falling into the categories above.
Eligible businesses will have also experienced a 60% reduction in turnover in May and June 2021 as compared to May and June 2019, caused directly by ongoing COVID-19 restrictions.
The grant application is open now and will close on 30 June 2021. You can make your application by running through the eligibility checker, then clicking on your relevant Local Authority link here:https://fundchecker.businesswales.gov.wales/businesssupport
Who can apply?
Businesses that meet the following criteria may be eligible for the grant:
- The business was trading prior to 4 December 2020 and is operating in Wales.
- The business must either have a HMRC Unique Taxpayer Reference (UTR) Number, a VAT Registration Number or a Company Registration Number.
- The business must have been forced to remain closed by ongoing restrictions between 1 May 2021 and 30 June 2021 and has experienced a drop in turnover of greater than 60% in the period as a direct result of the restrictions introduced and subsequently extended in Wales.
- The business is either:
- a limited company with a turnover of between £10,000 and £85,000; or
- a sole trader or partnership with a turnover of less than £85,000.
- The business must be your main source of income, i.e. it provides over 50% of your income.
How much can you apply for?
A grant is available to assist businesses based on the number of Full Time Equivalent (FTE) staff they employ as of 1 May 2021, as follows:
- Businesses partially closed and in transition, or supply chain businesses: 1 to 3 FTEs get £2,500, 4 to 9 FTEs get £5,000.
- Wedding and venues for event space accommodating more than 30 guests: 1 to 3 FTEs get £3,500, 4 to 9 FTEs get £7,000.
- Businesses forced to close throughout May and June 2021: 1 to 3 FTEs get £5,000, 4 to 9 FTEs get £10,000.
FTEs are the number of full-time jobs within an organisation. A full-time job is one of 30 hours or more per week; a part-time job is one of at least 15 hours per week; two part-time jobs count as one full-time equivalent job. The FTE figure can include the owners which may be taking drawings, however any employees must be paid through PAYE.
The process for making a claim is reasonably straightforward. As always, if you think you’re eligible and you need assistance with making a claim then please get in touch and we’ll be happy to help.