Small Business National Lockdown – Support Available

Following the latest Small Business National Lockdown announcement, we round-up the COVID-19 support available in the UK – including the new measures

After announcements from Boris Johnson and Nicola Sturgeon, England and Scotland have gone into lockdown. Wales has been in lockdown since December 20.

To support businesses through this period, chancellor Rishi Sunak has announced £4.6bn of grant funding. This includes a one-off top-up grant for leisure, hospitality and retail businesses of up to £9,000.

They’ll be granted to closed businesses as follows:

£4,000 for businesses with a rateable value of £15,000 or under
£6,000 for businesses with a rateable value between £15,000 and £51,000
£9,000 for businesses with a rateable value of over £51,000

A £594m discretionary fund is also being made available to support other businesses affected by the lockdown. As with the other grant funding, you’ll need to apply through your local authority.

More money has been given to the devolved nations as part of the announcement but there have been no further funding announcements from them at the time of writing.

This new Small Business National Lockdown support is in addition to existing funding, as listed below.

Additional Restrictions Grant (ARG)

Available for businesses that are not covered by other grant schemes or where additional funding is needed.

Bounce Back Loan Scheme (BBLS)

Loans of between £2,000 and £50,000, up to 25 per cent of turnover
The government guarantees 100 per cent of the loan with no fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5pc a year
Companies can now apply for a top-up in cases where they initially did not borrow the full amount available
Available until the end of March

Business rates relief

Businesses in the retail, hospitality and leisure sectors in England will not have to pay business rates for the 2020-2021 tax year.

Coronavirus Business Interruption Loan Scheme (CBILS)

Offers access to loans of up to £5m
80 per cent of the loan is guaranteed by the government. Government pays interest and any fees for the first 12 months
Available for businesses with annual turnover of up to £45m
Available for businesses with annual turnover of up to £45m

Small Business has teamed up with FundingOptions.com to help you find the right finance for your business. You can find their page here.

Coronavirus Job Retention Scheme (CJRS)

80 per cent of employees’ monthly salary covered for hours not worked, up to a maximum of £2,500
Employees do not have to be furloughed full-time to qualify. Employers will have flexibility to use the scheme for employees for any amount of time or shift pattern, furloughing employees on either a full-time or part-time basis
No employer contribution for hours not worked, employers only have to cover National Insurance and employer pension contributions
Available until end of April 2021

Future Fund

Convertible loans between £125,000 and £5m offered to innovative companies which are facing financing difficulties
Available until the end of January

Kickstart Scheme grant

Provides funding to create new job placements for 16 to 24-year-olds on Universal Credit who are at risk of long-term unemployment
The funding covers 100 per cent of the National Minimum Wage (or the National Living Wage depending on the age of the participant) for 25 hours per week for a total of six months
Also covers National Insurance contributions
Application must be for a minimum of 30 job placements, though you can team up with other businesses to reach the minimum number of placements

Self-Employed Income Support Scheme (SEISS)

Extended with two further grants, covering November 2020 to January 2021 and February 2021 to April 2021
The November to January grant is calculated at 80 per cent of three months’ average monthly trading profits, paid out in a single instalment and capped at £7,500

Localised Small Business National Lockdown support

As you’ll see, the funding below is distributed by your local authority. Find your local authority.

Local Restriction Support Grant (closed businesses)

You can apply for a grant if your business in an area of local Tier 4 restrictions and has been required to close because of local restrictions that resulted in a first full day of closure on or after December 19
The grant will be based on the rateable value of the property on the first full day of local restrictions.
If your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of £667 for each 14-day period your business is closed.
If your business has a property with a rateable value over £15,000 and less than £51,000, you may be eligible for a cash grant of £1,000 for each 14-day period your business is closed.
If your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of £1,500 for each 14-day period your business is closed
The grant will be extended to cover each additional 14-day period of closure. If your business is closed for 28 days, or two payment cycles, it will receive £1,334, £2,000 or £3,000, depending on the rateable value of the property

Original Source: https://smallbusiness.co.uk