The information on this page was last updated on 29th May 2020.
COVID-19 is undoubtedly having an immediate and significant impact on businesses. There are concerns regarding how to finance businesses during these difficult and unprecedented times from both a lender and borrower perspective, however it is vital to know there are still options out there viable for those in need of financial relief.
The following list is not exhaustive, and eligibility depends entirely on the individual circumstances of the business in hand. For full details of other schemes available, please visit out COVID-19 hub.
Providing support during unprecedented times
Smith Cooper can support you in accessing relevant finance (be it Government or funders), and also can support on scenario modelling – including doomsday analysis. We are encouraging all businesses to forward model cashflows over the next 3-6 months and take necessary actions to preserve their businesses.
Please do not hesitate to get in touch with a member of our dedicated Corporate Finance team who continue to keep appraised with the changing financial landscape and are here to help fine tune your borrowing proposal.
Support for retail, hospitality, nursery and leisure businesses that pay business rates
A business rates holiday for retail, hospitality, nursery and leisure businesses will be introduced in England for the 2020 to 2021 tax year.
Eligibility
To be eligible for the business rates holiday your business must:
- be based in England
- be in the retail, hospitality, nursery and/or leisure sector
Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:
- as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
- for assembly and leisure
- as hotels, guest & boarding premises and self-catering accommodation
- occupied by providers on Ofsted’s Early Years Register
- wholly or mainly used for the provision of the Early Years Foundation Stage
How to access the scheme
No action is required; the holiday will apply to council tax bills from April 2020. However, local authorities may have to reissue bills to exclude the business rate charge; they will do this as soon as possible.
To estimate the business rate charge forgiven this year use the business rates calculator.
Further guidance for local authorities is available in the expanded retail discount guidance.
Cash grants for retail, hospitality and leisure businesses
The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.
For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000.
For businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000.
Eligibility
You are eligible for the grant if:
- your business is based in England
- your business is in the retail, hospitality and/or leisure sector
Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:
- as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
- for assembly and leisure
- as hotels, guest and boarding premises and self-catering accommodation
How to access the scheme
You do not need to do anything. Your local authority will write to you if you are eligible for this grant.
Guidance for local authorities on the scheme will be provided shortly.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.
Support for businesses that pay little or no business rates
The government will provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered relief. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.
Eligibility
You are eligible if:
- your business is based in England
- you are a small business and already receive SBBR and/or RRR
- you are a business that occupies property
How to access the scheme
You do not need to do anything. Your local authority will write to you if you are eligible for this grant.
Guidance for local authorities on the scheme will be provided shortly.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.
Insurance
Businesses that have cover for both pandemics and government-ordered closure should be covered, as the government and insurance industry confirmed on 17 March 2020 that advice to avoid pubs, theatres etc is sufficient to make a claim as long as all other terms and conditions are met.
Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. Most businesses are unlikely to be covered, as standard business interruption insurance policies are dependent on damage to property and will exclude pandemics.
This information has been taken from the Government website which can be accessed from here.
