Businesses recovering from the devastating effects of the floods, specifically small to medium-sized enterprises, will be able to apply for a grant of up to £2,500 each to help get them fully functional as quickly as possible.

Penarth and the surrounding areas were hit by floods and businesses reported severe flooding damage across the storms of Ciara, Dennis and Jorge.

The First Minister recently announced that up to £10 million is being made available for the initial response to the floods and today's announcement forms part of that support package.

The fund will be administered by Business Wales and will support businesses with the immediate costs of recovery not covered by insurance, and to help meet the cost of renting alternative space and retaining staff.

Further details on how to apply for the fund will be made available in the coming days through the Business Wales website and businesses can also contact the Business Wales helpline on 0300 060 3000.

The £2.5 million fund is in addition to support the Welsh Government will provide for local authorities to meet the costs of discretionary business rates relief due to flooding for up to three months where a number of business premises are affected in a concentrated location.

Economy, Transport and North Wales Minister Ken Skates said:

Communities and business have suffered devastating and unprecedented effects from recent storms and subsequent flooding.

I have seen, first hand, the great community response to help people in need as well as the work of volunteers.

Today, the Welsh Government is announcing up to £2.5 million to support businesses, specifically SMEs, who have felt the full force of the floods. Each impacted business will be able to apply for up to £2,500 each to help get up and running again.

This will be in addition to meeting Local Authorities' eligible costs for the use of discretionary rates relief due to flooding.

As a government, we continue to work closely with councils to get a clear picture of the scale of the damage. This will determine how much additional funding is needed and what financial support we would look for the UK Government to provide.

Responding to the announcement, Ben Francis, FSB Wales Policy Chair, said: "Businesses across South Wales will warmly welcome the news that Welsh Government will provide financial support for flood-affected firms, as well as instigating business rates relief, and at FSB we are heartened to see that Welsh Government has listened to our recommendations to support business at this time.

"This will not only act as significant financial support for businesses but will help raise morale and boost confidence for those businesses that are currently trying to get back on their feet and get their doors open again.

"We now know that the flooding has had a serious impact on businesses, with some expecting to be closed for several months. Smaller firms are often at the heart of their communities, and when they are forced to close this can have a significant impact on the local area and economy. Therefore, we would encourage people to look out for businesses reopening in the coming weeks and months and to support them with their custom wherever possible.

"In the short term, we'd like to see more detail from Welsh Government on how firms can access this funding, to ensure that it can be distributed as quickly as possible and begin to have an impact on flood-affected firms. However, in the longer term, it is clear that a conversation about Wales' resilience and flood infrastructure is necessary. We must also take into account the readiness of businesses to deal with such a crisis, and how they can be supported to implement planning structures in the future."