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Emergency Business Fund (January 2022) Discretionary Fund Guidance Notes

EMERGENCY BUSINESS FUND - PURPOSE OF THE GRANT

The purpose of the grant scheme is to support businesses in the leisure, tourism, retail and hospitality sectors who do not pay business rates and are not eligible for the Economic Resilience fund, with their immediate cash flow and to help them survive the economic consequences of additional restrictions introduced on the 26th December 2021 necessary to control the spread of Covid-19.

The funding is intended to cover the business impact from the 13th December 2021 to the 14th February 2022. Specifically, the EBF will support businesses that are either:

i) Grant A:

£1,000 cash grant payment for hospitality, tourism, retail and related supply chain businesses which do not employ anyone apart from the owner, and do not have a property.

ii) Grant B:

A £2,000 cash grant payment for hospitality, tourism, retail, leisure and related supply chain businesses who employ staff through PAYE (in addition to the owner).

Supply chain businesses are defined as a business that generates 60% or more of its sales revenue from businesses directly impacted by the restrictions. I have not been required to close but my turnover has been materially impacted by the restrictions put in place. Materially impacted means a >40% reduction in December 2021 and January 2022 as compared to December 2019 and January 2020 (or a comparable two month period if the business was not trading in Dec 19 and Jan 20). Retail businesses are defined as those who would normally be eligible for rates relief as specified here https://businesswales.gov.wales/non-domestic-rates-retail-leisure-and-hospitality-rates-relief-wales-2021-22 For this scheme the same eligibility will apply even though applicants will not be paying business rates.

Self Catering businesses for less than 30 people are not eligible for this fund.

The grant will be open to applications from the week commencing the 17th January 2022 will close at 5pm on the 14th February 2022.

BUSINESS WALES

Business Wales provides tailored support to start-up, micro and small and medium sized businesses in Wales.  The service can help you understand what your needs are and provide tailored support packages including access to online tools, workshops, specialist advisers and mentors.  In addition to working with you on a business diagnostic and action plan, our advisers can also provide targeted financial advice and access other support that you might benefit from.

To find out more, please visit www.businesswales.gov.wales.

 EMERGENCY BUSINESS FUND- WHO CAN APPLY ?

Businesses that meet the following criteria may be eligible for the grant:

  • Business was trading prior up to the 13th December 2021 and would expect to be trading until the 14th February 2022th
  • Businesses must be operating in Wales
  • Businesses  with an annual turnover of at least £10,000
  • The business must be your main source of income (>50%)
  • Supported businesses must aim to maintain employment for until at least the 14th February 2022
  • Only one application per business

What do we mean by 'freelancer'?

Freelancers are sometimes known as contractors, may run their own business and are often defined as self-employed although they differ slightly from the self-employed. Freelancers may carry out multiple jobs on behalf of different companies, and often tend to work alone. A freelancer tends to work on numerous short-term contracts, offering services and time to various organisations in return for an agreed fee.

Businesses will not be eligible for the grant if they fall into one of the following categories:

  • Enforced closure having infringed social-distancing rules. However, if improvements have been made and the business has been allowed to re-open then they may be eligible for the grant (subject to meeting the eligibility criteria)
  • In liquidation or dissolved or in process of being struck off
  • Breached subsidy threshold
  • If the business you're applying for is not your main source of income
  • The business is a self catering business for less than 30 people
  • Your business pays business rates (this includes if you are receiving rate relief)
  • If you have received funding in the last 12 months which exceed 100% of your turnover in the 2019 financial year, you should not apply for this fund.

EMERGENCY BUSINESS FUND - HOW TO APPLY

Businesses can apply for the grant by accessing their Local Authority's website. If eligible, you will be able to access the online application form, complete all the requested fields and submit your application.

The Local Authority has absolute discretion on the duration and terms of the fund.

EMERGENCY BUSINESS FUND  - GUIDANCE ON COMPLETING THE FORM

Section 1 - Information about your business

This part asks for information about your business. Please ensure the details in this section are accurate and complete. Application forms that have incomplete or inaccurate data will not be processed.

When submitting the number of employees, this should be the number of staff working in the business including the owner.

Section 2 - Your personal details

This part asks for information about you the applicant / business owner.

Section 3 - Impact of the restrictions on your business

Please confirm or otherwise if the statement on the application form applies to your business. The local authority mayrequest further information/documentation to evidence this estimated turnover reduction. Also in this section if you are a supply chain business please tell us how the latest restrictions introduced during December are / will directly affect your business in the period 13th December 2021 to 14th February 2022.

Supply chain wording - Need to supply turnover data etc.

Section 4 - Bank Details

Please provide your business bank account details as this information will be used to make the grant payment to you - please ensure these details are correct.

The local authority may request your latest bank statements and further information to confirm your bank details and evidence trading activity.

This grant should be treated as income for taxation purposes.

Section 5 - Subsidy Control

The value of the Emergency Business Fund Grant is made to you in accordance with Article 3.2(4) of the UK-EU Trade and Cooperation Agreement. You will need to declare this subsidy to any other aid awarding body who requests information from you on how much aid you have received.

Examples could include Economic Resilience Fund, Start-up Grant, Non Domestic Rates Grants but not the Job Retention Scheme or the Self Employment Income Support Scheme (if you're unsure please list the support).

Section 6 - Declarations

Please read the declarations and tick the box to confirm you accept and understand them.

It is very important that you have read and understood this guidance document. 

EMERGENCY BUSINESS FUND - WHAT HAPPENS AFTER THE APPLICATION IS RECEIVED?

Receipt of your application will be acknowledged within 10 working days.

Decisions on applications will be made based on the information provided in the application form, associated evidence and information checks that are conducted from other business data sources. If any data is incomplete or incorrect or the evidence provided is insufficient we will not process the application and it will be rejected.

We aim to process grant applications within 30 working days of receipt of all required supporting evidence/information.

Grants will be paid on the basis that 100% of the grant is paid up front.

If your application is unsuccessful, you will receive an email outlining the reason[s] for rejection. There is no appeal process.

EMERGENCY BUSINESS FUND  - GRANT REPAYMENT

Applicants should note that the Local Authority may require repayment of the grant in full or part if evidence emerges that the applicant was not eligible for the Emergency Business Fund .