Building upon recent announcements to support businesses through the pandemic shutdown period, yesterday the Welsh Government announced a £500million fund aimed at businesses – including social enterprises/Third Sector – which have been forced to stop trading due to public health restrictions.
Accepting that only the UK Government has the kind of powers at their disposal to minimise the damage to the economy as a whole, the First Minister said the Welsh Government would aim to “fill gaps” in emergency coverage for businesses that would otherwise face insolvency.
The new fund is made up of:
- £100million to Banc to provide loans of between £5,000 and £250,000 “at favorable interest rates” (2% fixed for six years) for businesses facing immediate cash flow problems.
- From mid-April, grants of up to £10,000 for small businesses employing up to 9 people.
- From next week (w/c 6th April 2020) grants of up to £100,000 for businesses employing between 10-249 people.
- Unspecified support – within the next fortnight – for larger businesses headquartered in Wales.