Nationwide Small Enterprise Blocking – What Assist is Out there?
Provide support for the 2021 lockdown
After announcements by Boris Johnson and Nicola Sturgeon, England and Scotland are closed. Wales has been locked since December 20th.
To support companies during this period, Chancellor Rishi Sunak has announced grants totaling GBP 4.6 billion. This includes a one-time top-up grant for leisure, hospitality and retail businesses of up to £ 9,000.
They are granted to closed companies as follows:
- £ 4,000 for businesses with a fractional value of £ 15,000 or less
- £ 6,000 for businesses with a pro rata value between £ 15,000 and £ 51,000
- £ 9,000 for companies with a pro rata value over £ 51,000
A £ 594 million discretionary fund will also be made available to assist other companies affected by the lockdown. As with the other grants, you must apply to your local authority.
As part of the announcement, more money was given to the decentralized nations, but at the time of writing there have been no further funding announcements from them.
This new lockdown support complements the existing funding as listed below.
Grant additional restrictions (ARG)
- Available to businesses that are not covered by other grant programs or that require additional funding.
Bounce back loan program (BBLS)
- Loans between £ 2,000 and £ 50,000, up to 25 percent of sales
- The government guarantees 100 percent of the loan with no fees or interest for the first 12 months. After 12 months, the interest rate is 2.5 percent per year
- Businesses can now request a top-up if they did not originally borrow the full amount available
- Available until the end of March
> See Also: Microbusiness £ 50,000 Bounce Back Loans – How They Work
Relief of business rates
- Retail, hospitality and leisure businesses in England are not required to pay business rates for the 2020-2021 tax year.
Coronavirus Business Interruption Loan Scheme (CBILS)
- Provides access to loans of up to £ 5 million
- 80 percent of the loan is guaranteed by the government.
The government pays interest and fees for the first 12 months
- Available to businesses with annual sales up to £ 45 million
- Available until the end of March
> See also: How do I apply for a Coronavirus Business Interruption Loan?
Coronavirus Job Retention Scheme (CJRS)
- Eighty percent of the employee's monthly salary is covered for hours not worked up to a maximum of £ 2,500
- Employees don't have to be on full-time leave to qualify. Employers have the flexibility to use the system for employees for any length of time or shift pattern, with employees being either full-time or part-time leave
- No employer contribution for hours not worked, employers only have to cover social security and employer pension contributions
- Available until the end of April 2021
> See also: The government is making further changes to the Coronavirus Job Retention Scheme
- Convertible bonds between £ 125,000 and £ 5 million are offered to innovative companies facing funding difficulties
- Available until the end of January
> See also: Future Fund – State Technology Startup Rescue Program, How It Works
Kickstart Scheme Grant
- Provides funding for new job creation on universal loans for 16 to 24 year olds at risk of long term unemployment
- Funding covers 100 percent of the national minimum wage (or national living wage depending on the age of the participant) for 25 hours per week for a total of six months
- Also covers social security contributions
- The application must be made for at least 30 internships. However, you can partner with other companies to meet the minimum number of internships
> See Also: How To Apply For Your £ 1,500 Kickstart Program
Self-employed income support system (SEISS)
- Extension by two more grants from November 2020 to January 2021 and from February 2021 to April 2021
- The November to January grant is calculated at 80 percent of the average monthly trading profit for three months, paid in a single installment and capped at £ 7,500
> See also: Self Employed Income Support System, What It Means To You
Support for blocking localized small businesses
As you will see, the funding below is distributed by your local authority. Find your local authority.
Local Restriction Support Grant (closed companies)
- You can apply for a grant if your business operates in an area with local Tier 4 restrictions and has had to close due to local restrictions that resulted in a first full day of closure on or after December 19th
- The grant is based on the pro-rated value of the property on the first full day of local restrictions.
- If your business has a property with a fractional value of £ 15,000 or less, you may be eligible for a cash grant of £ 667 for every 14 day period that your business is closed.
- If your business has a property with a pro rata value greater than £ 15,000 and less than £ 51,000, you may be eligible for a cash grant of £ 1,000 for every 14 day period that your business is closed.
- If your business has a property with a prorated value of £ 51,000 or more, you may be eligible for a cash grant of £ 1,500 for every 14 day period your business is closed
- The grant is extended to every additional 14-day closure period. If your business is closed for 28 days or two payment cycles it will receive £ 1,334, £ 2,000 or £ 3,000 depending on the pro-rated value of the property
Strategic Framework Business Fund
Grant temporary closure
If your business needs to close, you may be eligible for a temporary closure grant in one of the following categories every four weeks:
- £ 2,000 if your business premises are prorated up to and including £ 51,000
- £ 3,000 if your business premises have a proportionate value of £ 51,001 or more
- A maximum total of £ 15,000 over a four week period applies to all Eligible Businesses operating multiple premises
Effective January 1, 2021, there will no longer be an upper limit of £ 15,000 for Eligible Businesses operating multiple premises.
Further sector-specific support is expected to be introduced later in January.
ERF Restrictions Business Fund
Hospitality companies that received the Lockdown Business Grant in October began receiving payments through the ERF Restriction Fund to their return account in December. These companies do not need to re-register their data.
Entitlement to the Business Restrictions Fund:
- Hospitality and non-essential retail businesses affected by the new restrictions that receive a Small Business Rate Relief (SBRR) and have a fractional value of £ 12,000 or less will be eligible for a payment of £ 3,000. Supply chain companies that qualify for SBRR are also eligible for this assistance if they experience a drop in sales of more than 40 percent during the lockdown period.
- Hospitality and non-essential retail businesses with a pro rata value between £ 12,001 and £ 150,000 may also receive a payment of £ 5,000 if they are affected by the restrictions. Supply chain companies in the same assessable value class are also eligible for this support if they experience a drop in sales of more than 40 percent during the lockout period.
ERF Restrictions Discretionary Grants
- The local authorities will continue to award the Lockdown Discretionary Grant to companies that are seriously affected. As with the Firebreak, this will continue to apply to companies that are not subject to the system of non-domestic tariffs (NDR) and are therefore not eligible for the subsidies associated with the NDR. The grant level for this strand would be set at an eligible cost of up to £ 2,000 per company
- This will provide non-VAT support to sole proprietorships who are severely affected (> 40 percent reduced sales) due to the restrictions, e.g. Cleaning staff who provide services for the hotel industry
- Application forms for the ERF Restrictions Discretionary Grant can be found on the relevant website of the local authority. Please refer to the website of your competent authority for more information. When all municipal systems are open, direct links to the relevant web pages will be posted on the Business Wales website.
The ERF sector-specific grant will be open from January 11th.
Localized Restrictions Support Scheme
Companies must meet three admission criteria:
- The company must operate from a property in Northern Ireland
- The company must fall into at least one of the following categories:
- It has been registered as a business with the local government's environmental health department or is about to register in one of the following categories: cafe, restaurant, hotel, guest house (including registered bed and breakfast), or pub
- It functions as a camping site or caravan park for caravans, cinema, museum, gallery, bingo hall, amusement park, indoor game room, indoor visitor attraction, trampoline park, inflatable park, escape room, a bowling alley or ice rink; or close contact services operated from business premises (as described in the health regulations), such as hairdressers and hairdressers, beauty salons, day spas, nail bars and tattoo parlors
- It is a company that has had to shut down or whose business activity on its premises was directly restricted by health regulations
- The shop must have been open to the public and trade at the beginning of the embargo period set by the health restrictions (unless the applying business is a wet bar serving only drinks).
New Independent Support Program (NSESS)
The Newly Self-Employed Support Scheme (NSESS) offers newly self-employed individuals (sole proprietorships and those in partnership) a one-time taxable grant of £ 3,500.
You must be able to show that you (as an individual) meet the following criteria:
- You started trading as a self-employed person between April 6, 2019 and April 5, 2020
- You traded on March 1, 2020 (before the COVID-19 pandemic).
- They were either temporarily unable to act or are currently acting but are experiencing lower demand due to the COVID-19 pandemic
- 50 percent of your income in 2019/20 came from self-employment
- Your trading profits for 2019/20 were below £ 50,000. In the case of a partnership deal, this refers to your share of the trading profit as stated on your individual tax return
- You saw a 40 percent or more drop in trading profits between March 1 and November 30, 2020; H. Your trading profits are at least 40 percent lower during this period than without the COVID-19 pandemic
- You can provide:
- 10-digit HMRC Unique Taxpayer Reference (UTR) associated with Schedule D earnings from a trade or profession
- HMRC VAT Registration Number if you are VAT registered
- You intend to continue acting as a sole proprietor or an individual member of the partnership
This program ends on Thursday, January 7th, 2021 at 6 p.m.
£ 9000 Lockdown Grant for retail, hospitality and leisure businesses