New Top-up to Local Business Grant Funds Scheme Announced to Help Small Businesses Including Bed and Breakfasts
A 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 is welcome news to accommodation owners who had previously found themselves ineligible for previous grants offered by the Government to assist businesses throughout COVID-19.
This additional fund is aimed at small businesses with on-going 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 £10,000.
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 applications
The 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 (CBILS) .
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 2020.
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 visit our Business Advice Hub .
- Visit Lincoln will continue to keep you updated on the latest announcements and support available. Find out further information on Visit Lincoln