How do I get the government £10,000 coronavirus cash grant?
UPDATED: On 17 March, the chancellor announced an increase in the small business coronavirus cash grant, taking it from £3,000 to £10,000.
This is part of a £330bn package of support for businesses, equivalent to 15 per cent of GDP.
Read more about the update at What does the latest Treasury stimulus mean for small business?
>See also: How do I apply for a Coronavirus Business Interruption Loan?
Eligibility is still based around rate relief. Those who qualify for Small Business Rate Relief (SBBR) or Rural Rate Relief will be able to get the funding.
The Department for Business, Energy & Industrial Strategy will be working with local authorities to outline the scheme and encourage local authorities to prepare.
However, once up-and-running, your local authority will contact you rather than having to apply yourself. Grant money will not be available until early April, as stated on the government website. Guidance will be issued to local authorities by 1 April and they will write to businesses shortly thereafter with details of how to claim the grant.
You can find your local authority here.
This additional funding for local authorities who collect business rates is part of a package of fiscal measures to help small business survive the coronavirus pandemic.
The coronavirus grant only applies to small business in England. Business rates in Scotland, Wales and Northern Ireland are set by their devolved administrations.
Compare business loans from across the market with our partners, Know Your Money.
How do I get the £25,000 grant?
A £25,000 grant will be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.
The government is also helping those who do pay business rates. All retail, leisure and hospitality companies will be exempt from business rates for the 2020/2021 tax year.
Properties that will benefit from the relief will be buildings 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
You won’t need to take any action – the relief will be applied to your next council tax bill in April 2020. However, the government warns that the local authority may have to reissue your bill immediately to exclude the business rate charge. They’ll do this as soon as possible.
Business rates: expanded retail discount – guidance has more information.
The government will also review the long-term future of business rates, a property tax which many say is unfair given the rise of online shopping and out-of-town retail parks.
Any questions about the reliefs should be directed to your local authority.
How do I get the £10,000 grant in Wales?
The Welsh package mirrors the offering in England, with the retail, leisure, nursery and hospitality businesses being given a year-long business rates holiday. A grant of £25,000 has been offered for businesses in the same sectors with a rateable value of between £12,001 and £51,000.
It also provides a £10,000 grant to all businesses eligible for Small Business Rates Relief with a rateable value of £12,000 or less.
How do I get the £10,000 grant in Scotland?
Again, Scotland will mirror the English reliefs:
Small businesses that receive the Small Business Bonus Scheme or rural relief will be eligible for a £10,000 grant. There will be 12 months’ relief for properties in the hospitality, leisure and retail sectors and a £25,000 grant for hospitality, leisure and retail properties with a rateable value between £18,000 and £51,000. This is expected to be expanded to include nurseries.
In addition to this, 1.6 per cent of rates relief will be given for all properties across Scotland, effectively reversing the planned below inflation uplift in the poundage from 1 April 2020 and there will be fixed rates relief of up to £5,000 for all pubs with a rateable value of less than £100,000 from 1 April 2020.
Is there any difference in Northern Ireland?
Rates will not be payable for the next three months on any business property and LPS are deferring issuing bills from April until June.
Grants can sometimes be combined with other forms of funding, such as banks, grant makers, crowdfunding platforms and other lenders. In fact, we have teamed up with FundingOptions.com to help you find the right finance for your business. You can find their page here.
Please do not contact us directly as to how to apply for the government’s £10,000 cash grant for small businesses. All the latest information will be added continually to this article.
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