ACCA welcomes Welsh government’s £500m business aid package, part of £1.1bn ‘reprioritised’ for economic and public services support
The Welsh Government's £500m Economic Resilience Fund provides extra support to the Welsh economy, businesses, social enterprises and charities experiencing a drop in trading as a result of Covid-19. This will also support those have been temporarily forced to stop trading altogether.
The support package comprises two separate funds:
1. £100m fund via the Development Bank of Wales, available to those experiencing cashflow problems, or who may need cash support to adapt to a remote way of working:
Limited companies, partnerships and sole traders trading for no longer than two years will be able to access loans up to £250,000 fixed at 2% interest and a capital repayment holiday for the first 12 months.
Applicants will need to demonstrate that they were able to service the debt prior to the outbreak.
The loan amount will be calculated based on number of people employed by the business or The loan amount will be calculated based on the number of people employed by the business or, alternatively, profit or turnover.
Loans of £5,000-£100,000: applicants will need to provide three months of bank statements.
Loans of £100,000 to £250,000: applicants will need to provide two years of annual accounts, management information and a cashflow forecast.
Security taken will be a 20% personal guarantee to a maximum of £25,000 for all investments; for deals over £100,000, a debenture will also apply.
2. £400m emergency funding providing:
grants of £10,000 for businesses employing up to nine people, including sole traders
grants up to £100,000 for businesses employing 10-249 employees
support for larger Welsh businesses of critical social or economic importance to Wales.
Applications can be made on the Development Bank of Wales’s website.
The new fund builds on the £1.4bn business support package announced by the Welsh government on 18 March, which provides:
business rates holiday for one year beginning on 1 April 2020 for retail, leisure and hospitality businesses in Wales with a rateable value (RV) less than £51,000
£25,000 grant for retail, leisure and hospitality businesses with an RV of between £12,001 and £51,000
£10,000 grant to all businesses eligible for small business rates relief with an RV of £12,000 or less.
ACCA is operating within official guidelines to support our members and other stakeholders, and as far as possible continue business as usual. Recognising that members and businesses are all in this together, sharing best practice will be essential.
ACCA has taken steps to support its 219,000 members and 527,000 students all over the world via an online Coronavirus hub with resources and updates for students, employers and staff as well as guides to aid business planning as well as insights from members in international markets.
In addition, ACCA’s Technical Advisory services will continue to be available to members in the UK via the email helpline.