COVID-19 Business Support Update – 7th January 2021

The ERF Restrictions Fund

This is for hospitality businesses who received the Lockdown Business Grant during the firebreak in October via their Local Authority. These businesses will have automatically received payments via the ERF Restriction Fund into their bank accounts during December without having to re-register.

Eligible businesses who are not already registered to receive any of the ERF Restrictions Fund payments will need to register their details and complete an application to their local authority. These payments will be sent to businesses in January. To receive this funding businesses must be on the non-domestic rates (NDR) rating list for their local authority on 1st September 2020.

Following the announcement of further restrictions from the 20 December the Business Restrictions Fund package of support has been enhanced to include non-essential retail business forced to close.

For full details on the financial assistance available for this fund please visit : https://businesswales.gov.wales/coronavirus-advice/erf-restrictions-business-fund

ERF Restrictions Discretionary Grant

This funding is aimed at businesses in the hospitality, leisure and tourism sector who are not on the non-domestic rates (NDR) system. Local authorities will continue delivering the Lockdown Discretionary Grant to these businesses and the grant level for this strand would be set at eligible costs of up to £2,000 per business.

This grant provides support to sub VAT threshold sole traders without a property who are materially impacted (>40% reduced turnover) as a result of the restrictions. You are not eligible for this grant if your business generated less than 50% of your income and the business must be your main source of income or you must have 50 or more employees.

Application forms for the ERF Restrictions Discretionary Grant can be accessed by visiting the relevant local authority website. Please check your relevant local authority website for details.

ERF Sector Specific Support

The ERF Sector Specific Support package is targeted at Hospitality, Tourism and Leisure (HTL) businesses or supply chain companies who are impacted with a greater than 60% impact of turnover as a result of the restrictions.

This is aimed at businesses who have a turnover above £85,000, or limited companies with turnover above £50,000 employing staff via PAYE, and are either VAT registered or exempt from VAT.

The following grants are available:

For a single employee business, minimum grant of £2,500

  • SMEs (up to 249 employees) - £1,500 per employee up to a maximum of 10 employees, representing £15,000 or for those employing more than 10, £1,500 per employee or self-declared operating costs for the restricted period (whichever is the lower amount). 
  • There would be an upper limit of £100,000 for SME businesses with a digital system based application.

Large businesses (250+ employees) - £500 per employee for Welsh headquartered large business applicants to a maximum of £150,000, with a manual case by case application via the sector team.

To apply for this grant applications are expected to open week commencing 11 January 2021.Businesses who have accessed the ERF Restrictions Business Fund can also apply for this fund. 

For full details on all of the above including eligibility criteria and application process please visit : https://businesswales.gov.wales/coronavirus-advice/

Grant Funding Available for Organisations

Investing in Sustainable Projects

The Welsh Government and WRAP Cymru have implemented changes to the £6.5 million Circular Economy Fund to help more businesses in Wales.

Organisations looking for funding for capital investment to manufacture or refurbish sustainable products may apply for a Circular Economy grant.

To be eligible projects must:

  • Increase the use of recycled plastic, paper / card or textiles in existing or new products (projects seeking to use other recycled materials will be considered on a case-by-case basis); or 
  • Extend the life-time of products / materials through preparation for re-use, refurbishment or re-manufacturing activities.

Organisations of any size, operating in Wales can apply for a capital grant, small scale grants are available from £25,000 to €200,000 (the maximum de minimis threshold) and Large Scale grants are available from €200,000 to £750,000.

Applications for grants from £25,000 to €200,000 can be submitted at any time until 10 March 2021.

For more information – including eligibility criteria, guidance documents, FAQs, application forms and submission deadlines please visit: https://wrapcymru.org.uk/grants

Chancellor unveils £4.6 Billion Lockdown Grant Package

Chancellor Rishi Sunak has announced a new £4.6 billion package of grants to support businesses through the latest national lockdown.

UK businesses in the retail, hospitality and leisure sectors are to be given one-off grants worth up to £9,000. The payments are expected to support 600,000 business properties across the UK. A further £594 million will be made available to councils and devolved nations to support businesses not covered by the new grants.

The Chancellor said: 'Throughout the pandemic we've taken swift action to protect lives and livelihoods and . . . we're announcing a further cash injection to support businesses and jobs until the spring.

This will help businesses to get through the months ahead – and crucially it will help sustain jobs so workers can be ready to return when they are able to reopen.'

The Welsh Government will receive £227 million of this funding. Further information on these grants can be found here.

For specific advice on any of the above or to discuss a funding application please speak to your usual BPU advisor or contact me directly.

Huw Palin Director
BPU Chartered Accountants
Email: huwp@bpuaccountants.co.uk
Call: 029 20734100

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