This Article Includes Information on:
Coronavirus Restart Grant
Check if you’re eligible for a Coronavirus Restart Grant (grant available from 1 April 2021)
The Coronavirus Restart Grant scheme has been developed to support businesses which operate in non-essential retail, hospitality, leisure, personal care, and accommodation sectors. Eligible businesses could receive a one-off grant, to assist the business in reopening safely as COVID-19 restrictions are lifted.
The Grant will become available from 1 April 2021, but you can now submit applications in advance.
Eligible businesses in the non-essential retail sector may be entitled to a one-off cash grant of up to £6,000 from their local council.
Eligible businesses in the hospitality, accommodation, leisure, personal care and gym sectors could be entitled to a one-off cash grant of up to £18,000 from their local council.
Your business may be eligible if it is:
- based in England
- in the non-essential retail, hospitality, accommodation, leisure, personal care or gym sectors
- trading on 1 April 2021
Businesses excluded from the fund
You cannot get funding if your business:
- is in administration, insolvent or has been struck off the Companies House register
- has exceeded the permitted subsidy allowance
You must notify your local council if your situation changes and you no longer meet the eligibility criteria.
This scheme is covered by 3 subsidy allowances:
- Small Amounts of Financial Assistance Allowance – you’re allowed up to £335,000 (subject to exchange rates) over any period of 3 years
- COVID-19 Business Grant Allowance – you’re allowed up to £1,600,000
- COVID-19 Business Grant Special Allowance – if you have reached your limits under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, you may be able to access a further allowance of funding under these scheme rules of up to £9,000,000, provided certain conditions are met
Grants under these 3 allowances can be combined for a potential total allowance of up to £10,935,000 (subject to exchange rates).
What you could receive
Local councils will use their discretion to determine whether businesses meet the eligibility criteria for this grant scheme.
Eligible businesses will be paid:
- a one-off grant of up to £6,000 in the non-essential retail sector
- a one-off grant of up to £18,000 in the hospitality, accommodation, leisure, personal care and gym sectors
Grants will be available from 1 April 2021, but you might be able to apply in advance.
How to apply for the Coronavirus Restart Grant
Visit your local council’s website to find out how to apply:
Leeds City Council: www.leeds.gov.uk
City of Bradford Metropolitan District Council: www.bradford.gov.uk
Sheffield City Council: www.sheffield.gov.uk
Wakefield Metropolitan District Council: www.wakefield.gov.uk
Kirklees Council: www.kirklees.gov.uk
Find the website for your local council here – https://www.gov.uk/find-local-council
Recovery Loan Scheme
The new Recovery Loan Scheme loan scheme is aimed to support access to finance for UK business as they grow and recover from the disruption of the COVID-19 pandemic.
The Recovery Loan Scheme ensures businesses of any size can continue to access loans and other kinds of finance up to £10 million per business, once the existing COVID-19 loan schemes close, providing support as businesses recover and grow following the disruption of the pandemic and the end of the transition period.
Once received, the finance can be used for any legitimate business purpose, including growth and investment.
The government guarantees 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses.
The scheme launches on 6 April and will be available until 31 December, subject to review. Loans will be available through a network of accredited lenders, whose names will be made public in due course.
What type of finance is available?
- Term loans and overdrafts will be available between £25,001 and £10 million per business.
- Invoice finance and asset finance will be available between £1,000 and £10 million per business.
Finance terms are available up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.
You will be able to apply for a loan if your business:
- is trading in the UK
You will need to show that your business:
- is viable or would be viable were it not for the pandemic
- has been impacted by the coronavirus pandemic
- is not in collective insolvency proceedings – further details will be provided in due course
Business that have received support under the existing COVID-19 guaranteed loan schemes will still be eligible to access finance under this scheme if they meet all other eligibility criteria.
Who cannot apply?
Businesses from any sector will be eligible to apply, except:
- banks, building societies, insurers, and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
How to Apply
The scheme will launch on 6 April 2021. Further details on how to apply and details of accredited lenders will be released in due course.
We will continue to support our clients throughout these uncertain times and provide further information when we can. Additionally, if you have any queries on any of the information provided above, or if you require any further support, please get in touch by calling us 0113 257 4506.