There is a range of financial assistance available to businesses who have been affected by the COVID-19 outbreak and following the Chancellor’s Winter Economy Plan, we have updated the support overview for businesses.

Economic Resilience Fund Phase 3, Business Development Grant

Due to high demand, the ERF Business Development Grant is suspended while Business Wales processes the applications received.  Please monitor the updates via the Business Wales website and their social media channels for information and updates. 

The fund is intended to support businesses with development projects to assist with recovery from the effects of Covid-19 and future sustainability.

The grants will be open to businesses of all sizes.

  • Micro businesses (employing between 1 and 9 people) will be able to apply for us to £10,000 on the condition they match this with their own investment of at least 10%.  For Tourism and Hospitality micro businesses, there will be a discretion for grant awards u pto 100%;
  • SMEs (employing between 10 and 249 people) will be able to apply for up to £150,000.  Small businesses (up to 50 employees) will be required to match this with the own investment of at least 10% and medium businesses (between 50 and 249 employees) with at least 20% of their own funding.  For Tourism and Hospitality SMEs, there will be a discretion for grant awards of up to 100%;
  • Large businesses (employing 250+ people) will be able to apply for up to £200,000 on the condition they match this with their own investment of at least 50%.

For further information and to check if you are eligible, click here.

Kickstart Scheme

you can use the Kickstart Scheme to create new 6-month job

placements for young people who are currently on Universal Credit and at risk of long-term unemployment.

The job placements should support the participants to develop the skills and experience they need to find work ar completing the scheme.

Funding is available for:

  • 100% of the relevant National Minimum Wage for 25 hours a week
  • Associated employer National Insurance contributions
  • Employer minimum automatic enrolment contributions

For more information, click here.

Job Retention Scheme

The Coronavirus Job Retention Scheme (known as furlough scheme) has been extended to March 2021.

To be eligible, an employer must work at least 33% of their normal hours.  For the other two thirds of the hours, the Government will pay a third and the employer will pay a third, so in total, an employee will receive 77% of the full pay (i.e. the Government will  be paying 22.5% of wages).

  • The scheme will run from six months from 1st November 2020.
  • Large businesses will have to prove that they’ve been adversely affected by the Coronavirus pandemic to be eligible for the Job Support Scheme.
  • The scheme will be available to all businesses and all employees, regardless of whether they have been part of the CJRS in the past.

For more information, click here.

Coronavirus Business Interruption Loan Scheme

Support for SMEs with a turnover of up to £45m with access to working capital (including loans, overdrafts, invoice finance and asset finance) of up to £5 million in value and for up to 6 years. 

  • The application deadline for all Coronavirus pandemic loan schemes – including the future fund – has been extended to the 30th November 2020.
  • Bounce back loans can be extended from 6 to 10 years under a Pay as You Grow scheme.
  • Businesses also move to interest only payments or suspend payments for up to 6 months.
  • A new successor loan scheme will be launched in January 2021.

For more information, click here.

Cultural Recovery Fund

Organisations in the cultural and heritage sector can find out if they are eligible to apply for financial support from the Welsh Government’s £53 million Cultural Recovery Fund.

A separate element of the Cultural Recovery Fund, worth £27.5 million, is being delivered through the Arts Council of Wales.

Self Employed Income Support Scheme

This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.  More information can be found here.

Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.  This is an automatic offer with no applications required. No penalties or interest for late payment will be charged in the deferral period.

Deferred VAT payments

The reduction in VAT to 5% from accommodation, hospitality and attractions is being extended to the end of the financial year.

Businesses who deferred their VAT will q2not longer have to pay a lump sum at the end of March next year.  There will be the option of splitting it into smaller, interest free payments over the course of 11 months

More information can be found here.

Additional information:

A short FAQ on business support is available here.

For a summary of current available support for business impacted by the Coronavirus is available here.

If you are a business in the hospitality sector, find information on how to run your business in the line with new guidance, here.

Other organisations who can help

Business Wales

Federation of Small Business

Business in Focus

South Wales Chamber of Commerce

Development Bank of Wales

Cardiff Capital Region

Business in the Community

HM Revenue and Customs

We urge all businesses to keep up to date with the most recent advice and guidance available on the Public Health Wales website.

We also encourage businesses to keep an eye on our Invest in Cardiff Twitter and LinkedIn pages for information as it changes.