New top-up to local business grant funds scheme
announced to help small businesses including bed and
discretionary fund has been set up to
accommodate small businesses previously outside the scope of the
business grant funds scheme with up to £617 million to be made
available for local authorities in England.
This additional fund is aimed at small businesses with ongoing
fixed property-related costs. Local authorities have been asked to
prioritise bed and breakfasts that pay council tax rather than
business rates, as well as businesses in shared spaces, regular
market traders and small charity properties.
Businesses must be small, under 50 employees, and they must also be
able to demonstrate that they have seen a significant drop of
income due to coronavirus restriction measures.
There will be three levels of grant payments. The maximum will be
£25,000, with other grants of £10,000 available. Local authorities
will have discretion to make payments of any amount under
Local authorities may choose to make payments to other businesses
based on local economic need and the allocation of funding will be
at their discretion. Further guidance for local authorities
will be set out shortly.
The new Bounce Back Loans Scheme opens for
scheme opens today 4 May and allows small
business owners to apply to accredited lenders by filling out a
simple online form, with only seven questions. Businesses will be
able to borrow between £2,000 and £50,000 with the cash being made
available within days. The Government guarantees 100% of the loan
and there won’t be any fees or interest to pay for the first 12
months. Loan terms will be up to six years.
The scheme will be delivered through a network of accredited
lenders. The Government has also agreed with lenders that a flat
rate of 2.5% interest will be charged on these loans.
You can apply
for a loan if your business:
- is based in the UK
- has been negatively affected by coronavirus
- was not an ‘undertaking in difficulty’ on 31 December 2019
The following businesses are not eligible to apply:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
If you're already claiming funding:
You cannot apply if you are already claiming under the
Coronavirus Business Interruption Loan Scheme
However, if you have already received a loan of up to £50,000
under CBILS and would like to transfer it into the Bounce Back Loan
scheme, you can arrange this with your lender until 4 November
How to apply:
The full rules of the scheme and guidance on
how to apply is available on the British Business Bank
website. See also guidance on GOV.UK.
To find out more about the support available to small businesses
Business Advice Hub.
We will continue to keep you updated on the latest announcements
and support available.