Intending to bolster small businesses, the UK government has offered a COVID-19 business support package with three kinds of grants for businesses. The first two i.e. the Retail, Hospitality and Leisure Grant and the Small Business Grant Fund were introduced in March. Later in May a Top-Up Grant or Local Authority Discretionary Grant Fund was announced. These were announced by the Chancellor to help with cash flow and fixed expenses during the lockdown with most businesses having to shutter down.
Small Business Grant Fund – £10,000 Grant (value of less than £15,000):
All those businesses that qualify under the Small Business Rates Relief on 11 March 2020 can avail for a grant of £10,000. Those under the Rural Rates Relief Scheme also qualify. Your local council should inform you if your business qualifies.
Retail, Hospitality and Leisure Grant Fund (up to £25,000):
these are for those businesses with values of £15,000 – £51,000. The business must come under retail, hospitality and leisure criteria since 11, March 2020 and also on the rating list. You should be informed by the local authorities about your eligibility. If you feel that you qualify but have been overlooked get in touch with your local authorities. Those qualifying get one grant per eligible property.
Local Authority Discretionary Grant Fund/Top-up Grant:
These are at the discretion of local authorities that are not covered by the Small Business Grant, the Retail, Hospitality and Leisure Grant or Dairy Hardship Fund as per UK government criteria. Those businesses paying business rates do not qualify. Also, businesses that qualify under the Self-employed Income Support Scheme are eligible. These are capped at £25,000 with the next levels of grants at £10,000. The latter amount can be disbursed by local authorities that have the authority. Primarily for small businesses that have fixed property costs.
Self-Employment Income Support Scheme:
Those that are self-employed and been adversely affected by COVID-19 may get direct financial support. The first phase is an 80% grant of average monthly profits for 3 months, the maximum amount of which is £7,500. The first phase is for affected individuals on or before 13 July 2020 by which it must be claimed.
The second phase covers individuals affected on and after 14 July 2020. The 70% grant covers 3 months of profits with the maximum sum payable being £6,570. It is claimable even for those that did not claim the first phase grant i.e. not adversely affected before 14 July 2020 but affected during the August harvest. Claims can be filed on 17 August 2020 and must be made on or before 19 October 2020.
The grants only apply for individuals with self-employed earnings less than £50,000 with earnings having accounted for more than half total income.
For more info check the Uk Government Website