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Small business grant

Who is eligible ?

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In the budget this afternoon, there was some mention of a grant of £3000 for very small businesses.  Has anyone discovered which businesses qualify?

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Lone Wolf
By Lone_Wolf
11th Mar 2020 17:12

Small ones I presume...

But no, I don't think any specific detail has been released on this as yet. Same with the SSP update, and talk of small business loans - don't think there's much in the way of detail around the Coronavirus measures.

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RLI
By lionofludesch
11th Mar 2020 17:13

Bit optimistic to be asking that just now.

The devil will be in the detail, no doubt.

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Replying to lionofludesch:
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By John Stone
11th Mar 2020 17:26

Lion - until recent years - as soon as the Chancellor sat down, there would be a series of press releases available setting out the details, start date and financial impact of each such measure. That day seems to have gone - unfortunately.

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Replying to John Stone:
RLI
By lionofludesch
11th Mar 2020 17:51

John Stone wrote:

Lion - until recent years - as soon as the Chancellor sat down, there would be a series of press releases available setting out the details, start date and financial impact of each such measure. That day seems to have gone - unfortunately.

Ah - it'll be there somewhere.

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RLI
By lionofludesch
11th Mar 2020 17:13

Duplicated

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RLI
By lionofludesch
11th Mar 2020 17:14

No - triplicated

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By Wanderer
11th Mar 2020 17:37

When I listened to the speech I wrote down
£3,000 cash grant if RV < £51,000
as I'm convinced that was what he said at the time.
(Edit, see below, Chancellor actually said those eligible for SBRR)

BUT detail of the announcement says:-

"1.101 Small business grant funding – The government recognises that many small
businesses pay little or no business rates because of Small Business Rate Relief (SBRR). To support those businesses, the government will provide £2.2 billion of funding for Local authorities in England. This will provide £3,000 to around 700,000 business currently eligible for SBRR or Rural Rate Relief, to help meet their ongoing business costs. For a property with a rateable value of £12,000, this is one quarter of their rateable value, or comparable to 3 months of rent. Most
properties that are eligible for SBRR will have a lower rateable value, and so this will represent an even greater proportion of their annual rent."

which is somewhat different!

Anyone know where one can see a recording of the speech so I can convince myself that I wrote it down incorrectly?

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Replying to Wanderer:
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By Wanderer
11th Mar 2020 17:28

Looks like it was wishful thinking on my part:-
"I am providing, to any business currently eligible for the small business rates relief, a £3,000 cash grant per business."
Although hat's the original script, would still like to see a recording.

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Replying to Wanderer:
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By Wanderer
11th Mar 2020 17:36

Okay, found a recording:-
https://www.youtube.com/watch?v=GSH2fK7TnhA
I was wrong, he did say £3,000 to those eligible for SBBR (not SBR).

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Replying to Wanderer:
By Charlie Carne
12th Mar 2020 13:51

To save listening to it all over again, here is the transcript:
https://www.gov.uk/government/speeches/budget-speech-2020

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Hallerud at Easter
By DJKL
11th Mar 2020 17:25

https://www.gov.uk/government/publications/support-for-those-affected-by...

Best I have found but all a little thin right now, seems to be linking with those already receiving 100% small business rates relief in E & W.

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Replying to DJKL:
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By Wanderer
11th Mar 2020 17:30

Here's the detail (which I've already quoted from above):-
https://www.gov.uk/government/publications/budget-2020-documents/budget-...

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RedFive
By RedFive
11th Mar 2020 17:55

My digging around so far has found that it will be paid by your local authority.

Which kind of makes sense as it is business rates related.

If receiving SBRR then receive £3k

With local authority administrating it though I won’t hold my breath to claim myself or point my clients towards the process of doing so.

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By atleastisoundknowledgable...
12th Mar 2020 09:50

I had a client email me at 12.51 yesterday asking how they get this £3k!

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By tomgill
12th Mar 2020 10:39

meanwhile in Scotland???? Im amazed that its only local authorities in England who will receive this money to distribute as graants!

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Replying to tomgill:
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By sally1964
17th Mar 2020 13:58

Scotland has its own budget - it can choose where to allocate it's money - ask Nicola Sturgeon.

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By tomgill
12th Mar 2020 10:41

meanwhile in Scotland???? Im amazed that its only local authorities in England who will receive this money to distribute as graants!

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Replying to tomgill:
RLI
By lionofludesch
12th Mar 2020 10:50

tomgill wrote:

meanwhile in Scotland???? Im amazed that its only local authorities in England who will receive this money to distribute as graants!


Scotland, Wales and Norn Iron have their own legislatures.

That arrangement has its plusses and minusses.

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Replying to tomgill:
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By sarah douglas
26th Mar 2020 13:14

Meanwhile in Scotland

For those in Glasgow, the Application has been open 2 days now as well as the rest of Scotland. My application went in 2 nights ago. Every Council has a link.

https://www.glasgow.gov.uk/coronavirusbusinessfund

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By legerman
12th Mar 2020 10:49

From what I can see I'm eligible, as well as 3 of my clients, I have a small office and get SBBR, the others are shops and also get SBBR. Also might apply to a FHL that gets the same.

We'll have to await more details.

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By The non-boring accountant
12th Mar 2020 13:49

From the budget https://www.gov.uk/government/publications/budget-2020-documents/budget-...
“Small business grant funding – The government recognises that many small businesses pay little or no business rates because of Small Business Rate Relief (SBRR). To support those businesses, the government will provide £2.2 billion of funding for Local authorities in England. This will provide £3,000 to around 700,000 business currently eligible for SBRR or Rural Rate Relief, to help meet their ongoing business costs. For a property with a rateable value of £12,000, this is one quarter of their rateable value, or comparable to 3 months of rent. Most properties that are eligible for SBRR will have a lower rateable value, and so this will represent an even greater proportion of their annual rent.”
When this comes into force, start date and how to apply is not yet clear.

Also what for some business' goes hand in hand is the announcement made by the Chancellor yesterday that the government will go further and abolish business rates altogether for this coming year via means of giving 100% retail discount to other businesses – which in the past would not have been able to benefit from the retail discount. That means that any eligible retail, leisure or hospitality business with a rateable value of £51K or less will for the next financial year pay no business rates whatsoever.

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By silicondale
13th Mar 2020 13:50

So what about those even smaller businesses operating from home who don't even know anything about SBRR because we don't pay business rates at all? Are we to be excluded from this? I have had to cancel European travel for meetings which have been cancelled - with non-refundable tickets and no chance of travel insurance claims because FCO have not issued any advice (other than for Italy). A £3000 grant would be a very helpful buffer against these expenses.

As a supplementary question, I am also a trustee of a small rural educational charity (which as far as I am aware does not pay business rates). They will almost certainly have losses this year from cancellations of visits by schools for the 1-day courses they provide, and the grant could certainly provide a financial cushion to this loss of income.

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Replying to silicondale:
Helen Froggett Thomson
By Helen Froggett-Thomson
14th Mar 2020 09:09

You've asked the question I've been wondering about. And no one has answered it. I suspect the answer is we're not eligible if we work from home. Looks like everything we've worked for and taken for granted is going to be thrown up in the air and god knows what the new landscape will look like. Sorry I can't be more reassuring. They are talking about being more lenient with payment periods for tax, but food bills etc won't wait, although mortgage companies may simply have to?

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Replying to Helen Froggett-Thomson:
By silicondale
14th Mar 2020 09:26

Thanks for that, Helen - much as I expected. Also, it's in line with the lack of any real help for the self-employed. I'm probably fortunate in that much of my company's income is on EU science projects, and I can just put anything that can't be refunded on expenses claims. These could possibly be disallowed in the event of an audit by the European Commission, but at least that lessens the immediate pain! As for the charity, we'll ask our accountant to check this out with the local authority, but not just yet! They probably know even less than we do.
-Steve

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By memyself-eye
15th Mar 2020 12:07

I'm the trustee of a charity with an RV of £9,500 and 100% BR relief - I wonder if they qualify?

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By sba
17th Mar 2020 11:30

With regard to the £3k grant....

I was talking to someone in our local Council's Business Rates department - I managed to get half a response on this (only half because he wasn't able to talk freely and resorted to agreeing when I finally worked it out!).

The announcement in the Budget was as much a surprise to local councils as it was to the rest of the us. Since the Budget there has been no advice or policy issued to the council as to who is eligible, when the grant will happen, etc.

The council's best guess as far as who is eligible - SBRR is available to businesses with a low rateable Business Rate, it is for the people who are eligible to claim that on a business premises. It is to make up for the fact that the next level up are benefitting from a cut in their Business Rates. It will not be available for home-workers as they don't pay Business Rates.

My contact suggested I ask him again a couple of months!

(my cynical side is saying that it sounds like a much-needed cushion, but by delaying the grant by a couple of months they will save money on the businesses that disappear or resort to home-working between now and then...!)

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Replying to sba:
By silicondale
17th Mar 2020 12:55

Thanks, sba. I would tend to agree with your cynical side. It's yet another case of smoke and mirrors. The "700,000" businesses that will "benefit" from it are as real as the "40" hospitals this government is going to build. And absolutely of no benefit to businesses that operate from home.

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Replying to sba:
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By the_fishmonger
18th Mar 2020 11:07

On HMRC (search for "covid-19-support-for-businesses")

"The government will provide additional funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR). This will provide a one-off grant of £10,000 to businesses currently eligible for SBRR or rural rate relief, to help meet their ongoing business costs.

If your business is eligible for SBRR or rural rate relief, you will be contacted by your local authority – you do not need to apply.

Funding for the scheme will be provided to local authorities by government in early April. Guidance for local authorities on the scheme will be provided shortly."

As this will require your LA to come up with a system, I reckon we might start seeing the grants paid out June/July soonest. Not exactly what we need - perhaps they want us to take out a loan first!

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By sba
17th Mar 2020 17:22

Update from No.10 statement just now ....

Grant for the smallest businesses now increased to £10,000

Hospitality businesses will get a grant of £25,000

Still no info on when though!

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John Stokdyk, AccountingWEB head of insight
By John Stokdyk
17th Mar 2020 17:34

17 March, 5:15pm - The business rates holiday has been extended to all businesses, and the small business grant has been upped to £10k Chancellor Rishi Sunak announced at today's Downing Street press conference.

Plus £330bn in loan guarantees to help businesses through hardships caused by coronavirus. "We will do what it takes to defeat this enemy" was the recurring message from Prime Minister and Chancellor.

No paperwork as yet to detail how businesses can actually get their hands on all this support, and Robert Peston asked why they're using debt to support businesss when it could just undertake to cover their liabilities... (think that would definitely break existing rules).

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By lincolnartist
17th Mar 2020 17:37

Still no help whatsoever for the small businesses who run from home. Shameful

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By NH
17th Mar 2020 19:58

Is there any definite answer as to whether or not this only applies to English councils, I notice in the original budget announcement currently on .Gov the 51k relief does indeed just say England but the paragraph on the grant simply mentions councils.

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By andrewjlane
18th Mar 2020 08:18

One question that I can't see has already been asked - the taxable status of these grants? Taxable on the recipient or not? I've asked the Treasury to put something in the public domain to clarify...

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Replying to andrewjlane:
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By MrsG
26th Mar 2020 13:01

Does anybody know the answer to this question? I can't find anything online...

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By Carolynne
18th Mar 2020 16:17

Can anyone clarify about the budget speech mentioning £3,000 grant, but the Covid-19 for small business page on the Gov. UK site, says £10,000? Here is a cut and paste of the gov.uk page as follows

COVID-19: support for businesses
Updated 18 March 2020

The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.

This includes a package of measures to support businesses including:

a statutory sick pay relief package for SMEs
a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans

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John Stokdyk, AccountingWEB head of insight
By John Stokdyk
25th Mar 2020 08:59

Hi everyone - thanks for using this thread to share any information you can find on the availability of the grants. SBA's inside contact seems to have given the game away. I spent a couple of days chasing official channels for clarification and was giving up hope of finding out anything useful when BEIS finally released guidance to councils. The summary is here (with links to the original document): https://www.accountingweb.co.uk/tax/business-tax/small-business-grants-c...

Main issue is that the councils will now have to program their business rates systems to collect new information fields specified by the deprtment for monitoring and anti-fraud purposes. That's not going to slow things up, is it?

We'll continue to chase any information we can get. In the meantime, this was a very useful policy tracking page I found thanks to a tweet from ICAEW chief Michael Izza: https://www.businesssupport.gov.uk/coronavirus-business-support/

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By Tim Parker
25th Mar 2020 13:57

I run a small business from a Council run business park. The building is subdivided into smaller units who all pay rent depending on size. My rateable value is way below the indicated £15000. We don't pay Business rates but there is no "official" SBRR for tenants - at least not that I have ever signed/seen. It is assumed we have SBRR due to the nature of the park and the low monthly rents. I have asked the question about the £10000 grant as we seem to fall into the criteria of eligible businesses, however the Council are stalling sighting a grey area as they pay rates on the building as a whole - but does it make a difference if a council or a private owner runs the building?

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By sarah douglas
26th Mar 2020 13:15

For those in Glasgow, the Application has been open 2 days now as well as the rest of Scotland. The application went in 2 nights ago. Go to your local Council to get the link.

https://www.glasgow.gov.uk/coronavirusbusinessfund

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