The Small Business Grant Fund is now fully operational, with small businesses across the country receiving grants of £10,000 or £25,000. In Telford & Wrekin, over £20 million has been allocated to local business already, providing a vital lifeline for their staff and allowing the any loss of income as a result of coronavirus to be mitigated.
The business grants, which are funded by the Government and administered by the local authority, are granted to businesses which on the 11th March 2020 had a rateable value of less than £51,000 and would have been eligible for a discount under the business rates Expanded Retail Discount Scheme had that scheme been in force are eligible for the grant.
The £51,000 cap is designed to prevent fraud and improper claims, and covers the vast majority of small businesses. However, there have been a number of business have have had their applications declined as they do not meet the specification.
Most businesses that have been deemed ineligible fall largely into two categories:
- Businesses with a rateable value of over £51,000.
- Businesses that pay their rates as part of their rent agreement.
In circumstances where business rates are inclusive in rent agreements, businesses have found themselves ineligible. Furthermore, there have been a number of small business that have contacted Lucy who are based in antique properties or have large premises but operate on tight profit margins who would benefit from receiving the grant. The Treasury team has been working hard to ensure that the vast majority of businesses can access appropriate financial support and has devised the Small Business Grant Fund and its other measures in an unprecedented short time.
Lucy has today asked the Chancellor a question in writing, raising the case of businesses that are ineligible for the reasons above and asking what steps the Treasury can take to support businesses that are ineligible for grant funding and that schemes are revised and improved as feedback is received.
