How to get Coronavirus grant from the government for small businesses?

On 17^th March, the Chancellor to the exchequer, Rishi Sunak, announced that due to coronavirus (COVID-19) outbreak, cash grant will be offered to the small businesses for which the limit has been increased from £3,000 to £10,000. Contribution made by the UK government to the small businesses is a part of the £330 billion package of support to businesses (which is equivalent to 15% of GDP). It is basically done by UK government to help small businesses survive during the pandemic named “Coronavirus”.

On 24^th March 2020, Grant guidelines have been issued to the local authorities by the UK government but it has not been forwarded to the businesses right now. Local authorities will contact small businesses shortly and will tell them “how to claim the grant”. You are only eligible for this grant if you are holding/renting a property and paying rates on it.

• Eligibility for small businesses
• How to claim cash grant of £10000?
• How to claim cash grant of £25000?
• Exclusions to small business grant scheme
• Exclusions to Retail, hospitality & leisure grant scheme
• Whether eligible for both the grants or not?
• How to claim £10000 grant in wales?
• How to claim £10000 grant in Scotland?
• How to claim £10000 grant in Northern Ireland?

Who are eligible for the Funding?

Funding will be provided to the businesses who qualify for small business rate reliefs (SBRR) or rural rate reliefs. Following persons are eligible -

• If the person was a ratepayer as per billing authority’s records in relation to inherited property as on 11^th March 2020.
• In case the information about the ratepayer is inaccurate, local authority has full right to withhold or recover the grant from him.
• In order to identify the correct rate payer, landlord and management agent urged to support local government.

How to get a cash grant of £10,000 for small businesses?

What is this scheme?

Cash grant of £10,000 will be offered to the small businesses that are getting SBRR or rural rate reliefs by the government. This scheme is called Small business grant scheme. This scheme is provided to the eligible businesses.

Eligibility criteria for Small business grant scheme

A business is eligible for cash grant of £10,000 under small business grant scheme, if you meet the following criteria mentioned below –

• Your business is based in England.
• You are holding/renting a property.
• You are already getting small business rate or rural rate relief.

How & when will you get the money?

There is no need to do anything. Just wait for the communication from your local council. If your business is eligible for this cash grant, you will be contacted by your local council and will get the full cash grant of£10,000.

Also Read: Budget 2020 summary: Key Points, Entrepreneur’s Relief to Stay

How to get a cash grant of £25,000 for small businesses?

What is this scheme?

Cash grant of £25,000 is offered to retail, hospitality and leisure businesses by the government. This scheme is called Retail and hospitality grant scheme. There are two cash grants offered by the government of England based on the rateable value which are as follows –

• Businesses having rateable value up to £15,000 will get a cash grant of £10,000.
• Businesses having rateable value between £15,001 - £51,000 will get a cash grant of £25000.
• Businesses having rateable value above £51,000 are not entitled for any cash grant under this scheme.

Eligibility criteria for Retail and hospitality grant scheme

You are eligible for cash grant of either £10,000 or £25,000 under retail & hospitality grant scheme if you meet the following criteria mentioned below –

• Your business is based in England.
• You are involved in retail, hospitality & leisure business.

Which properties are entitled for Cash grants?

Under retail & hospitality grant scheme, properties used for the following purposes are eligible for cash grant of either £10,000 or £25,000.

• Shops, cafes, restaurants, cinemas, drinking establishments, and live music venues.
• Guest and boarding premises, hotels and self-catering.
• For assembly & leisure accommodation.

How & when will you get the money?

There is no need to do anything. Just wait for the communication from your local council. If your business is eligible for this cash grant, you will be contacted by your local council and will get the full cash grant of either £10,000 or £25,000.

Exclusions to small business grant

• Any inherited property occupied for personal use including private stable, beach huts, use moorings (Where boat or ship is moored), loose boxes etc.
• Businesses which are in liquidation or were dissolved since 11^th March 2020 will not be eligible for small businesses grant fund (For the avoidance of doubt).
• Car parks and Parking spaces.

Exclusions to Retail, hospitality & leisure grant

• Any inherited property occupied for personal use including private stable, beach huts, use moorings (Where boat or ship is moored), loose boxes etc.
• Businesses which are in liquidation or were dissolved since 11^th March will not be eligible for small businesses grant fund (For the avoidance of doubt).
• Car parks & Parking spaces.
• Only one grant may be provided on every inherited property.
• Inherited property with a rateable of over £51,000.

Are you eligible for both the business grants?

In case your business is eligible for both small business grant scheme & retail and hospitality grant scheme, you will get both the cash grants. However, this news is not yet confirmed by the government. Local councils are currently busy in organising the way to distribute money and will contact you shortly in case you meet the eligibility criteria.

Also Read: Government Announces ‘Unprecedented’ Measures for Small Businesses to Fight Coronavirus Crisis

How can I get £10,000 grant in Wales?

Grant of £10,000 is offered to retail, leisure, nursery & hospitality businesses by the Wales government. The grant available for small businesses in Wales is similar to the businesses available in England. The slight difference is the eligibility criteria which is mentioned below –

• Businesses eligible for small business rates relief having a rateable value of £12,000 or less will get a grant of £10,000.
• Businesses having rateable value between £12,001 to £51,000 will get a cash grant of £25,000. It is available for retail, leisure, nursery & hospitality businesses.

How can I get £10,000 grant in Scotland?

On 18^th March 2020, Economy secretary of the Scottish government “Fiona Hyslop” announced various reliefs for the businesses in Scotland w.e.f April 1 to support them in coronavirus outbreak. It includes –

• 100% non-domestic rates relief for the whole year for retail, hospitality & tourism businesses.
• Grant of £10,000 for small businesses getting small business bonus schemeor rural relief.
• Retail, hospitality & leisure businesses having a rateable value of between £18,000 to £51,000 will get a grant of £25,000.
• Relief of 1.6% for all properties.
• Urging local authorities to make rules to allow restaurants as well as pubs to operate on temporary basis for takeaways (From April 1, fixed rate relief will be provided up to £5,000 for all pubs having rateable value of less than £100,000).

How can I get £10,000 grant in Northern Ireland?

The grant available for small businesses in Northern Ireland is similar to the businesses available in England. The slight difference is the eligibility criteria which is mentioned below –

• Grant of £10,000 for small businesses eligible for small business rate relief scheme.
• Grant of £25,000 to companies involved in retail, tourism and hospitality businesses having rateable value between £15,000 to £51,000.

In order to find out when the grant money will be funded to the small businesses, look out for the official announcement on UK government website or contact DNS associates directly at 03330604487 or e-mail us at enquiry@dnsaccountants.co.uk

Also Read :-

• Coronavirus Business Interruption Loan Scheme (CBILS)
• Limited Company Expenses You Can Claim When Working From Home

About the author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.