Welsh Government has announced a start-up grant to support new businesses dealing with the severe impact of coronavirus.
The fund which is initially worth £5m will support start-up firms which are not eligible for the UK Government’s Self Employment Income Support Scheme as they only began trading in 2019.
Applications for the grant will open on Monday, June 29, at the same time as phase two of the Economic Resilience Fund opens to applications.
The new start-up grant will support up to 2,000 businesses in Wales, with £2,500 each.
Announcing the fund today Friday, June 26, First Minister Mark Drakeford said: “Today’s announcement will help to support new businesses in Wales which are currently falling through the gaps of existing financial assistance schemes.
“A number of people who have started a business in the last year don’t qualify for support from the UK Government’s Self Employment Income Support Scheme and it remains unclear if it will take steps to ensure they will change the criteria to help this group of people.
“This is why we have acted and set up a start-up grant. This has come from our work with Welsh Local Government Association and local authorities to look at what more support the business community needs at this time.”
Welcoming the grant, the Leader, Cllr Huw David, said: “This will provide crucial funding to people who established their businesses between 1 April 2019 and 1 March 2020, helping them to continue trading through the pandemic.
“As a local authority we have already administered more than £28m to over 2,200 businesses in the form of Welsh Government business support grants.
“This new start-up grant will give critical cash flow support to eligible businesses to help them overcome the economic repercussions of the crisis.”
To be eligible for the start-up grant, businesses must:
- have not received funding from the Welsh Government’s Economic Resilience Fund or the non-domestic rates grant
- have been set up between the 1 April 2019 and 1 March 2020 and have not qualified for the UK Government’s Self Employment Income Support Scheme
- have less than £50,000 turnover
- have experienced a drop in turnover of more than 50 percent between April and June 2020.
- Applicants will need to submit a two-page application form and self-declaration supported by evidence.
- The grant will be administered by local authorities and businesses can check their eligibility by visiting the Business Wales website.
- The start-up grant will be delivered in the county borough by Bridgend County Borough Council with applications opening from 12 noon on Monday, June 29.