Business

How to get the Covid-19 Small Business Grant

by Anekha Pillai
small-business-grant

The Covid-19 pandemic has really hurt our nation in some of the worst ways imaginable. Endless lockdowns mean a number of businesses have had to reluctantly close shop, which inevitably means huge losses, and some have even had to close their business altogether. When national restrictions forced many businesses to go under, the government decided to implement LNG Supplemental Agreement schemes (closed).

The Small Business Grant Fund (SBGF) supports small and rural businesses in England with their business costs during the pandemic. It was imposed by the government so small businesses may be eligible to participate in LNG Supplementary Agreement schemes to stay afloat and be able to return to pre-pandemic levels of work when the time came.

Grant Application Deadlines

Deadlines for applying to the Supplementary Agreement (closed) schemes are published on the UK government website, but just to reiterate them:

  1. Scheme and date:

National isolation from 5 November 2020 to 31 March 2021 had two billing cycles.

The national isolation period started in January.  The first billing cycle was from January 5 to February 15, and then again from March 31, 2021.

If your business cash flow was unsettled between national isolation, January 5, 2021, and the second billing cycle from February 16 to March 31, 2021, you might have a chance to obtain the small business grant.

Defining Eligibility

You may be eligible for the small business grant for coronavirus if:

  • you are based in England
  • it occupies the property and pays commercial rates (and is the payer of the rate)
  • it was forced to close due to a national lock from January 5, 2021, or from November 5 to December 2, 2020.
  • during that time or longer, it cannot provide normal personal customer service from its premises

For example, a list of eligible businesses can include non-essential trade, leisure, personal care, sports facilities, tourism, and hospitality. This may also include companies that operate face-to-face, but for that time have been forced to provide an online or take-out-only service.

If you’ve found yourself on the eligible businesses list, you can receive one grant for each property outside the home.

However, you cannot get funding if:

  • you can continue to work during the lockdown because you are not dependent on direct personal services from your premises (e.g. accountants)
  • you chose to close but it was not necessary to close due to national restrictions
  • your business is run by the administration, is insolvent, or has been deleted from the register of Companies House
  • you have reached the allowed subsidy limit

You must notify the local council if the business situation changes and you no longer meet the selection criteria.

Subsidy for COVID-19

New domestic subsidies for COVID-19 business support will start working on March 4, 2021.  Be careful, because the applications submitted before this date are subject to the previous rules.

The scheme is covered by three subsidies:

  1. Small amounts of financial assistance – receive up to £335,000 (depending on the exchange rate) over any three years
  2. Business Grant for COVID-19 – businesses can get up to £1,600,000
  3. Special COVID-19 Business Grant Allowance – if you have reached your limits under the previous two grants, you may access the ‘Additional Funding Allowance’ under the rules of this scheme up to £9,000,000

Grants under these three benefits can be combined to generate a potential total benefit of up to £10,935,000 (depending on the exchange rates).

Outcome

The general amount of the subsidy will depend on the billed value of the property on the first full day of isolation. 

Small business grants for the period from January 5 to March 31, 2021, will be based on the property’s estimated value on January 5, 2021. The first billing cycle covers January 5 – February 15, 2021.

If your business has a property with an assessed value of £15,000 or less, you may get a cash grant of £2,001 during the mentioned 42-day qualifying period of restrictions.

If your business has a property value of between £15,000 and £51,000, you may get a cash grant of £3,000 during the 42-day qualifying period of restrictions.

Finally, if your business properties appraised value is £51,000 or higher, you may claim a cash grant of £4,500 during this 42-day qualifying period of restrictions.

You will also be eligible to receive a one-time lockdown payment, which your local council must pay together with the first billing cycle grant under this scheme.

The second billing cycle covers February 16 – March 31, 2021. For this, if your business has property worth £15,000 or less, you may be eligible for a cash grant of £1,334 during the 28-day restriction period.

If your company owns property with a value of more than £15,000 and less than £51,000, you may get a cash grant of £2,000 for a 28-day restriction period.

Finally, for business real estate valued at £51,000 or higher, you may claim a cash grant of £3,000 during the 28-day restriction period.

Application and Conclusion

Details of grant applications differ from community to community, so you should visit your local council website to find out how to apply. These small business grant schemes can help your business stay onboard during a crisis like a lockdown. If you want to get your cash – don’t wait, head to the government website and apply.