For many small businesses, the announcement of £10,000 grants for companies struggling to deal with the impact of coronavirus was a vital lifeline. Discover how to apply and who’s eligible
Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality.
A key part of Chancellor Rishi Sunak’s 2020 budget announcements was a commitment to offering some UK small businesses £3,000 small business grants to help mitigate the impact of coronavirus. As the scale of the crisis’s economic impact became clear, this was subsequently increased to £10,000.
In this guide, we’ll cover who is eligible, how to apply, and the arrangements for other parts of the UK:
Which small businesses are eligible for a coronavirus grant?
Unfortunately, not all UK small businesses will be eligible for this grant, there are a few boxes that your business must tick.
The official grant guidance is that:
- Your business must have a business premises
- That business premises must be in England
- You must be eligible for either small business rate relief (SBRR) or rural rate relief
This means that many startups will be excluded – basically you need to have a business premises in England, but the tradable value of those premises needs to be below £15,000.
Approximately 700,000 small businesses are expected to be eligible.
How to apply for a coronavirus small business grant
The scheme will be rolled out through local authorities – with the government stating that eligible businesses will be contacted by their local authority in due course.
The government has stated that guidance for local authorities will be provided shortly, and that local authorities will get funding for the scheme in early April.
So, the bottom line is that it will take at least 3-4 weeks for businesses to receive money through the scheme.
What small business coronavirus grants are available in other parts of the UK?
As business rates are devolved, different arrangements are in place for Wales, Scotland and Northern Ireland.
Wales
The Welsh government has announced that £100m will be made available for small business grants, but has not yet released details of this scheme.
Scotland
The official guidance for small businesses in Scotland is that an £80m fund will provide grants of at least £3,000 to small businesses in those sectors worst affected by the coronavirus outbreak.
Northern Ireland
Currently the only official support that has been announced for small businesses in Northern Ireland is a three-month business rates “holiday” for all businesses in Northern Ireland. Further announcements are expected in the coming days.
Summary
- Eligible businesses must have a business premises in England and claim business rates relief
- Eligible businesses will be contacted by their local authority
- Local authorities will receive funding in early April and the distribute grants to small businesses that have applied for them
Commenting on the scheme, Startups.co.uk editor Bryn Glover stated:
“It’s great to see the government taking small business seriously in the budget, and they have taken that a step further since COVID-19 has spread. However, with the strict criteria in place for qualification, many small businesses and sole traders will still be vulnerable. It remains to be seen whether the government’s actions so far will be enough to stem the likely tide of struggling businesses, or if more will need to be done in the coming weeks and months.”
Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews.
