The Government has announced additional financial support to the UK’s smaller business owners, which have been excluded from existing schemes.
An additional £617 million will be made available via the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF) for small firms with ongoing fixed property-related costs.
Local authorities have been asked by the Government to prioritise grants to businesses that shared operate out of shared spaces, regular market traders, small charity properties that would meet the criteria for Small Business Rates Relief, and bed and breakfasts that pay council tax rather than business rates.
Local authorities have also been given discretionary powers to make payments to other businesses based on local economic need. A decision on who will receive funding will be down to the discretion of each local authority.
To be eligible a business must be small (under 50 employees) and be able to demonstrate that they have experienced a significant drop in income as a result of the COVID-19 pandemic restriction measures.
There will be three levels of grant payments under the new rules depending on the business. These include grants of £25,000, £10,000 and small grants of under £10,000 that can be made at the discretion of local authorities.
So far more than 614,000 business properties have benefitted from the grant funding schemes – receiving more than £7.5 billion.
It is hoped that those who missed out on initial grants will be supported by this latest change to the rules. Further details of the scheme are expected shortly.
Here to help
You are likely to have many queries regarding grant funding and the other financial support available to your business, which is why we are standing by to help. To find out how our experienced team can assist you during these difficult times, please contact us.