Calling all small Welsh Businesses – support announced
The Welsh Government have announced a package of support worth £1.4bn for small businesses to help them during these challenging times.
We have set out below what is included within the package and some useful links to provide you with the further information you need in order to claim this much-needed support.
Business Rate Relief
Shops, leisure and hospitality
Businesses within this sector with a rateable value of £51,000 or less will receive 100% business rate relief.
Pubs with a rateable value of between £51,000 and £100,000 will receive a £5,000 reduction on their bill.
Expanding on this support there will also be a new package providing in 2020/21, retail, leisure and hospitality businesses in Wales with one-year business rates relief and a grant of £25,000 for retail, leisure and hospitality businesses with a rateable value of between £12,001 and £51,000.
There will also be a £10,000 grant to all businesses eligible for Small Business Rates Relief with a rateable value of £12,00 or less.
How to claim the relief
Businesses that qualify for this support will not need to do anything to apply for this scheme. This will be administered through the Business Rates system.
Your local authority will write to you in due course to provide you with further information.
Coronavirus Business Interruption Loan Scheme
In addition to this, a new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch the week commencing 23 March 2020 to support SMEs to access bank lending and overdraft facilities. For further information on this and advice on how we can assist you in connection with this, please refer to our article here. The Coronavirus Business Interruption Loan Scheme will be available to businesses in Wales and will operate much in the same way as the current Enterprise Finance Guarantee but on more attractive terms for businesses and lenders alike.
How to claim the relief
Full details on what steps to take in order to claim the relief are set to be revealed when the scheme is rolled out on the week commencing 23 March 2020.
However, the British Business Bank have set out a provisional list of what’s required in order for businesses to be eligible on its website.
In terms of which lenders are currently set to provide funding under the scheme, please visit here to find the list of the 40+ accredited banks.
As and when further information is released, we are here to help you in assessing whether your business is eligible for the scheme, and if so, making contact with lenders to seek out the funding required. Please therefore contact out corporate team if you would like us to assist you.
How are Welsh banks helping?
Development Bank Wales
DBW have advised they are committed to helping Welsh businesses get through the Coronavirus outbreak. Please visit here to understand how DBW might be able to help you during this crisis.
DBW have confirmed that they have put in place business continuity measures to support Welsh businesses including:-
- Offering a 3-month repayment holiday
This is a 3-month capital and monitoring fee repayment holiday for all customers on request.
This arrangement will remain in place until 30th June 2020.
If you are a customer of DBW and require our assistance in claiming a your 3-month repayment holiday, please contact a member of our corporate team.
We continue to monitor the impact that COVID-19 is having on small Welsh businesses and are committed to providing you with support and guidance during this time. As and when further information is published on the support available to Welsh businesses, we will keep you updated and well informed.
If you require any legal support during this time, please get in contact with a member of our Acuity team. We have expertise in many areas including employment-related matters, commercial contracts, insolvency/restructuring and general corporate advice.