Covid-19 advice for businesses
Business grants and loans
Apply for covid-19 business cash grant
Business Grant Funding
- All businesses currently eligible for small business rate relief (SBRR) or rural rates relief (RRR) will receive a one-off grant of £10,000 per business.
- All active businesses currently in receipt of these relief will be eligible for this grant.
- All eligible small businesses in the retail, hospitality, and leisure sectors will receive a cash grant - not just those in receipt of SBRR.
- Businesses in these sectors with a property which has a rateable value below £15,000 will receive a grant of £10,000, while businesses in these sectors with a rateable value of between £15,001 and £51,999 will receive a flat grant of £25,000.
- No action required for businesses, your local authority will contact you if you are eligible for cash grants.
- To claim your Business Grant
Discretionary Fund Business Grant Scheme
On 13 May 2020 the Government issued guidance for the distribution of a local discretionary grant, to support small businesses who were not eligible under the Small Business Grant Funding and Retail, Hospitality and Leisure scheme Given the limited funding available to support this scheme, it is important that District and Borough Councils carefully consider of the delivery of this funding, to ensure that it is made available to those eligible businesses most in need of help as a result of COVID-19. Northampton Borough Council paid out £1.7 million as part of this scheme and closed for applications in July.
Coronavirus Bounce Back Loan
- The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.
- The Government will guarantee 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 for 6 years. No repayments will be due during the first 12 months. The Government will work with lenders to agree a low rate of interest for the remaining period of the loan.
- The scheme will be delivered through a network of accredited lenders.
Coronavirus Job Retention Scheme
- All UK employers will be able to access support to continue to pay part of their employee's salary for those employees that would otherwis be laid off during this crisis.
- HMRC will reimburse 80% of furloughed workers' wage costs, up to a cap of £2,500 per month.
Coronavirus Business Interruption Loan Scheme
- New temporary Business Interruption Loan Scheme, delivered by the British Business Bank, to be launched on Monday 23rd March to support businesses to access bank lending, overdrafts, asset finance and invoice finance to a value of up to £50 million.
- The Government will provide lenders with a guarantee of 80% on each loan to give lenders further confidence in continuing to provide finance to SMEs. The Government will not charge businesses or banks for this guarantee, and will also cover the first 12 months of interest payments and fees.
- You should talk to your bank or finance provider (not the British Business Bank) as soon as possible and discuss your business plan with them. This will help your finance provider to act quickly. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.
- More information on the scheme, including the list of lenders who will be offering finance under it, can be found on the British Business Bank website
Coronavirus Future Fund
- This scheme will issue converitble loans between £125,000 to £5 million to innovative companies which are facing financial difficulties due to the coronavirus outbreak.
- The scheme is not yet avaliable, it will launch in May 2020.
- These convertible loans may be a suitable option for businesses that rely on equity investmnt are unable to access the Coronavirus Business Interuption Loan Scheme The scheme will be delivered in partnership with the British Business Bank.
Corporate Financing Facility
- The Bank of England will buy short-term debt from larger companies, this will support your company if it has been affected by a short-term funding squeeze, and allow you to finance your short-term liabilities.
- Scheme begins w/c 23rd March, more information will become available on the Bank of England website