A discretionary fund has been set up to accommodate certain small businesses previously outside the scope of the Small Business Grant Funding scheme.
Business Secretary Alok Sharma and Minister for Regional Growth and Local Government, Simon Clarke, have confirmed that that up to £617 million would be made available in grants for small companies in shared spaces.
This is an additional 5 per cent uplift to the £12.33 billion funding previously announced for the Small Business Grants Fund and the Retail, Hospitality and Leisure Grants Fund.
The Business, Energy and Industrial Strategy department said the fund is aimed at small businesses with ongoing fixed property-related costs – businesses in shared spaces, regular market traders, small charity properties, bed and breakfasts that pay council tax rather than business rates, and other businesses who are not eligible for business rates relief.
Businesses must have fewer than 50 employees and be able to demonstrate that they have suffered a significant drop of income because of the Coronavirus lockdown.
There will be three levels of grant payments. The maximum will be £25,000. There will also be grants of £10,000. Local authorities will have discretion to make payments of any amount under £10,000. It will be for councils to adapt this approach to local circumstances.
Further guidance for local authorities will be announced this week and we will provide a update at that time.
If you or a client are considering applying to the Government loan scheme to support your business during this unprecedented time, please contact your usual Beavis Morgan Client Partner or email info@beavismorgan.com.
For further information about the Government measures to protect individuals and businesses, visit our COVID-19: Support for UK businesses hub.