May 14, 2020
Businesses are facing hard-hitting troubles due to the global outbreak of COVID-19 pandemic. Many small business owners are considering getting grants to fund their businesses. The good news is that the government has set out tailor made measures to facilitate the public services, people and businesses during this trying period.
Quantum of funding provided to businesses under various schemes
All eligible businesses in England in receipt of either Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR) in the business rates system will be eligible for a payment of £10,000. This is called Small Business Grant Fund.
The new Retail, Hospitality and Leisure Grant entitles businesses that are in receipt of the Expanded Retail Discount and with a rateable value of less than £51,000 for a cash grants of £10,000 or £25,000 per property. The business sectors included are Retail, Hospitality and Leisure.
Small business grants are available for all sorts of situations. These programs are designed for a number of reasons, including to help:
Government grants are non-payable, i.e. you are not required to pay back any of the money you are awarded not even any interest on it. Further, you are not offering any equity in your business or control over decision making in exchange for the grant from government.
In a nutshell, this Small Business grant is a financial aid provided by the government to an eligible grantee and it does not call for any sorts of financial assistance viz. loan or loan guarantee, revenue sharing or an interest rate subsidy. Furthermore, the government grants for small business are funded by the tax revenue; therefore, they have strict compliance and reporting guidelines to make certain that money awarded is profitably spent.