Will the Minister outline the eligibility criteria for phase 3 of the economic resilience fund's sector specific support and how it differs from the criteria applied in phases 1 and 2?
The previous two rounds of the Economic Resilience Fund (ERF) were sector specific; the latest, third round is not.
The criteria for each round is set out below:
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ERF Sector Specific Fund (January 2021 – February 2021) |
The £180m ERF Sector Specific Fund (operating costs) package was targeted at hospitality, tourism and leisure businesses or supply chain companies which were materially impacted with a greater than 60% impact on turnover as a result of the restrictions. Eligible businesses had to be employing staff via PAYE, and either VAT registered or (exempt from VAT) with turnover of more than £85,000, or limited companies with turnover above £50,000.
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ERF Sector Specific Fund – Phase 2 (March 2021) |
A second phase of the ERF Sector Specific Fund provided an additional £30m support to SME and large businesses to cover the period from 25 January 2021 to 31 March 2021. This was in addition to the original allocation provided under the first phase of Sector Specific Fund.
The ERF Sector Specific Fund phase 2 (operating costs) package was targeted at hospitality, tourism and leisure businesses and supply chain companies, which were materially impacted with a greater than 60% impact on turnover since 25 January, as a result of the restrictions. It was aimed at supporting the operating costs (excluding staff) of businesses through the restriction period.
For businesses to be eligible, the following criteria had to be met: - Employ staff via PAYE - VAT registered or exempt from VAT - Turnover of more than £85,000, or limited companies with turnover above £50,000 - Greater than 60% impact on turnover as a result of restrictions
Businesses which accessed the first phase of the Sector Specific Fund could also apply for this phase. |
ERF Business Support – May and June 2021
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Businesses with an annual turnover of £85k and more · Must be (or anticipated to be) experiencing at least a 60% drop in turnover compared to a normal trading period (generally 2019) · Businesses are either: a) Forced to remain closed by regulations between 1 May 2021 and 30 June 2021 b) Unable to open indoors between 1 May 2021 and 17 May 2021 c) A venue which caters exclusively for weddings and events with a regulatory restriction capacity of 30 guests d) A supply chain business that generates 60% or more of its sales revenue from businesses falling into categories a), b) and/or c) · Must have been trading before 4 December 2020 · Meets one of the following: o A company registered with Companies House or the Charities Commission with a turnover above £85,000 o VAT registered with turnover above £85,000 o Sector exempt from VAT with turnover above £85,000 (see details of VAT exemption). o A fully constituted and trading partnership, community interest company, co-operative society or community amateur sports club. · Pay staff through a PAYE scheme (can include the owners/directors)
Business with less than £85k turnover (support administered by local authority) · Must be (or anticipated to be) experiencing at least a 60% drop in turnover compared to a normal trading period (generally 2019) · Businesses are either: a) Forced to remain closed by regulations between 1 May 2021 and 30 June 2021 b) Unable to open indoors between 1 May 2021 and 17 May 2021 c) A venue which caters exclusively for weddings and events with a regulatory restriction capacity of 30 guests d) A supply chain business that generates 60% or more of its sales revenue from businesses falling into categories a), b) and/or c) Must have been trading before 4 December 2020. |
Consideration and options are being developed to provide further financial support for businesses if restrictions continue beyond 21 June.