A new £617m fund to help businesses with under 50 employees who had been excluded from previous coronavirus support measures has been welcomed by business leaders.
The grants are aimed at small businesses with ongoing property costs and will be administered by local authorities, business secretary Alok Sharma and Simon Clarke, minister for regional growth and local Government, Simon Clarke announced.
Local authorities will receive a 5% uplift in funding to help support local small businesses that have fallen outside the scope of the business grants fund scheme.
Grants of £25,000, £10,000 or any discretionary amount under £10,000 will be available to small firms that have demonstrably been impacted by Covid-19 but cannot access the small business grants previously made available to those who pay business rates.
While local authorities will be able to use their discretion when allocating the funds, they have been asked to prioritise businesses in shared spaces, regular market traders, small charity properties and bed and breakfasts that pay council tax rather than business rates.
Commenting on the discretionary fund for small businesses that have previously been outside the scope of the business grant funds scheme, Nova Fairbank, head of Policy for Norfolk Chambers said:
“We have been calling for additional support for businesses and entrepreneurs who have fallen between the cracks, so it is welcome to see additional funding allocated to support some of these hard-pressed firms.
“Clarity and speed are of the essence. Many of the companies that have been unable to use existing support schemes are already on borrowed time – and will need these grants paid out swiftly if they are to survive.”
