How to get the government’s £10,000 cash grant for small businesses

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.

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.

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.

 

How do I get the £25,000 grant?

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.

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 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. Guidance for local authorities on the business rates holiday will be published by 20 March.

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