Welsh Government have launched the Childcare Providers Grant to assist childcare providers who were ineligible for any other government business support package. Childcare providers can apply to this funding stream of up to £5,000 if they can demonstrate that their net profit has decreased as a result of the Coronavirus pandemic.
The scheme will be administered by Wrexham Council (Childcare Team) and will provide a one-off grant to help childcare providers meet the additional financial burdens they have faced since March and to improve their sustainability.
Applications for the scheme will open on August 24 and the scheme will close on October 31, 2020. The first payments will be made to providers in September; eligible applicants will receive any awards within 30 working days of the receipt of the application.
Purpose of the grant
The purpose of the grant is to support registered childcare businesses with immediate cash flow support to help them with the economic consequences of the Covid-19 outbreak. The grant seeks help those childcare businesses which have not been able to access other schemes and complements other Covid-19 response measures to support businesses, social enterprises and charitable organisations in Wales.
How much can you apply for?
The amount you receive will depend on your net income from April 1 to June 30, 2020 compared to the same period in 2019:
- If your business net income was reduced by up to 50%, you could get a grant of up to £2,500
- If your business net income was reduced by 51% or over, you could get a grant of up to £5,000
The amount you get will be based on the lowest net income reduction. You will get a maximum of either £2,500 or £5,000, depending on which category your business falls under.
Alternatively, if your business started trading on or after April 2, 2019 you may be eligible for a grant of up to £2,500 if you suffered a net loss for the period April 1, 2020 to June 30, 2020 and meet all of the other criteria listed below. The grant you will receive will be the lower of £2,500 or the actual loss suffered for the period.
There are examples at the end of the guidance notes to help guide you through the calculations.
Who can apply?
A grant of up to £5,000 is available to CIW registered childcare businesses that have been affected by the Covid-19 outbreak. Your net income for April to June 2020 must have reduced compared to April-June 2019 due to COVID-19 and you must not have been able to access the various other grant schemes offered by UK and Welsh Governments.
Or, alternatively, if you started trading on or after April 2 2019, you may be eligible for a grant of up to £2,500 if you suffered a net loss for the period April 1 2020 to June 30 2020 and meet all of the other criteria listed below.
This grant can only be claimed by businesses that meet the following criteria:
- The business provides childcare;
- The business is registered with Care Inspectorate Wales (CIW);
- Businesses must have been operating in Wales on or before March 1 2020 and is continuing, or intends to continue operating in Wales;
- Where the business is temporarily closed, the business must undertake to fully re-open on, or before September 14 2020; or if based on school premises, as soon as the school allows
- The business has experienced a reduction in net income due to coronavirus during the period April 1 to June 30 2020 compared to the equivalent period in 2019; or if the business started trading on or after April 2 2019 and suffered a net loss for the period April 1 2020 to June 30 2020;
- Business has not received funding from and/or has not successfully applied for Economic Resilience Fund, Business Rate Grant, Self-Employment Income Support Scheme, Welsh Government Start Up Grant, or Third Sector Resilience Fund or, where relevant, the Mudiad Meithrin grant scheme which is funded from the Third Sector Resilience Fund.
- Where applicable, Coronavirus Job Retention Scheme (CJRS) declarations are up to date and copies will be provided with the application;
- Businesses need to confirm that without the grant support the viability of the enterprise will be under threat, and outline why;
- Business must be, or must undertake to become within 12 months, registered as a company limited by guarantee, a private limited company, Community Interest Company or a Charitable Incorporated Organisation. (Cwlwm partners are able to discuss this with you if you are unsure). If you are a childminder and are registered with HMRC as a sole trader then you are exempt from this requirement;
- If you employ staff, your business must aim to maintain employment for 12 months;
- Only one application per businesses.
Businesses need to confirm that without the grant support the viability of the enterprise will be under threat, and outline why.
All applications will be considered on an individual basis and payment of the grant is at the absolute discretion of the awarding body.
Businesses will need to provide...
- Proof of identification of applicant (one of the following)
- Current UK or EEA photocard driving licence
- Current signed passport
- Original Birth certificate
- Proof of business address (one of the following)
- Council tax statement
- Utility bill
- Written correspondence confirming registration with HMRC
- If based on school premises, suitable evidence or confirmation from the school
- Evidence of active trading up to March 1 2020 e.g. bank statements (please ensure all business related income and expenditure is clearly highlighted on bank statements)
- Actual turnover for the 2019/20 tax year and anticipated turnover for the 2020/21 tax year.
- Business bank statements, or statements for accounts used for business purposes to be provided for the periods April 1 to June 30 for 2019 and 2020
If any of the above documents are in an individual’s name rather than in the name of the business, please explain why.
Businesses which are unable to agree to the criteria above are ineligible for the scheme.
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, advisers can also provide targeted financial advice and access other support that you might benefit from.
Find out more
How to apply
You must include your supporting evidence with your application. Applications without supporting evidence will not be considered.
You can call our Wrexham Childcare Team on 01978 298100 if you need further information or advice or support with the application process.