Economic Resilience Fund: 'Frustration' after fund 'fully subscribed'

Lisa Allsop, who owns a garden centre in Dinas Mawddwy, says she had been left disappointed

Business owners say they have been left frustrated after an online application for grants to help them through the coronavirus pandemic shut.

On Wednesday, firms were able to apply for business development grants as part of the Welsh Government's £300m Economic Resilience Fund - Phase 3.

Some said they were given 36 hours and not told to have business plans ready.

The Welsh Government said the £100m of grants were "fully subscribed" after more than 5,500 businesses applied.

"Due to the high volume of applications received and our commitment to getting funds out as quickly as possible to business, we closed the business development grant element of the fund yesterday," a spokesperson said.

It added that successful applicants should expect to start receiving money from the middle of November, and businesses could still benefit from the remaining £200m available from the third phase.

That £200m is available to retail, hospitality and leisure businesses that are required to close and occupy a property with a rateable value between £12,001 and £51,000. Businesses will need to register and update their details via the Welsh Government organisation Business Wales or their local authority to receive financial support.

But a Facebook post by Business Wales announcing the grant application process had been "paused", attracted criticism from some business owners.

A garden centre owner said the process did not allow time to put a proper business plan together

One said they had been "thrown under a bus" while others described it as a "hot mess", "shambles" and "absolute abomination of a process".

Lisa Allsop, owner of the Camlan Garden Centre, Farm Shop and Cafe in Dinas Mawddwy, Gwynedd, said: "I went to complete the application this morning online to find that applications had been closed and it's only been online 36 hours.

"I also discovered when I went to do the application, it's quite complex and needs detail - you have to go away and research, find financial quotes and put a proper business plan together. That takes time and we haven't had time to do that.

"This grant would have helped us set up an online shop which would have hopefully Covid-proofed us for the future.

"It is very disappointing that so early on this has happened and that there's no detailed information about it."

At the Welsh Government's press briefing on Friday, First Minister Mark Drakeford acknowledged the process for businesses to access help during the pandemic was "complex".

But he said businesses understood why that is the case and appreciated the Welsh Government support on offer.

Lisa Allsop said the scheme was closed to new applications 36 hours after opening

Mr Drakeford said: "When we make schemes available in Wales over and above the schemes available through the UK government, that does add complexity.

"But truthfully, I think it is a complexity that business understands and welcomes because with that complexity comes £500m and more of help to businesses in Wales, that would not be available to them at all if we were simply relying on the support that has come from the UK government."

Mr Drakeford said there had been a "large response" to the latest phase of the Welsh Government's Economic Resilience Fund "and that tells me that there are thousands of businesses in Wales who want to get the help that we are making available to them".

He added that advice was available to navigate the "complex landscape" through the Business Wales website.

A Welsh Government spokesperson said they were "continuing to explore further options for supporting businesses through the pandemic, including to help them prepare for EU transition, and are working to ensure that businesses who have not yet applied to the fund are able to register an expression of interest on the Business Wales website".