New Restart Grants Announced

New Restart Grants Announced

From April 2021, a new ‘restart grant’ will be available for businesses in England to help reopen the high street after lockdown.

The restart grant offers a one-off cash grant of up to £18,000 to businesses, including:

  • Pubs
  • Clubs
  • Hotels
  • Resturants
  • Gyms
  • Salons

Non-essential retail businesses can get up to £6,000 through the scheme as the roadmap plans for shops to reopen sooner than other businesses.

How do I get this support?

You will need to speak to your local authority about this grant.

Your business may be eligible if it:

  • is based in England.
  • pays business rates on the property.
  • has had to close because of national lockdown from January 2021 or between 5 November and 2 December 2020
  • has been unable to provide usual in-person customer service.

Business Rates Holiday and Discounts for Tax Year 2021

Business Rates Holiday and Discounts for tax year 2021-22

The government canceled business rates for all retail, leisure, and hospitality businesses, in response to the Covid-19 outbreak. This business rates holiday applied in England for the full tax year 2020-21 and has now been extended until June 2021 for:

  • Shops
  • Restaurants, cafés, bars, pubs
  • Hotels
  • Restaurants, cafés, bars, pubs
  • Cinemas, live music venues
  • Assembly or leisure properties, like sports clubs, gyms, spas Gyms
  • Hospitality properties, like hotels, guest houses, self-catering accommodation.
    After June 2021, business rates will be discounted for the remaining tax year 2021-22. There will be a 66 percent business rates reduction from 1 July 2021 to 31 March 2022, up to a maximum of £2 million for closed businesses.

How do I get this support?

You do not need to do anything to get this support – it will be applied to your April 2021 Council Tax bill. You can use the government’s business rates calculator to find out the amount you will no longer have to pay this year.
Click on the official GOV.UK link for more information on rates calculator.

Recovery Loan Scheme
The scheme launches on 6 April and is open 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 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.

    Eligibility:

    You will be able to apply for a loan if your business:

  • Is trading in the UK.
  • 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.
  • A business that has 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.
    The official details of this scheme can be found on GOV.UK.

Protection if you can't pay your Commercial Rent

Protection if you can’t pay your Commercial Rent

The government announced that commercial tenants who cannot pay their rent because of the Covid-19 outbreak will be protected from eviction.
The government has extended its initial ban on business evictions multiple times and it is now due to end in June 2021. It says that businesses that can pay rent should continue to do so, as the ban is designed to protect businesses struggling the most.

How do I get this support?

Commercial tenants and landlords are being encouraged to come to voluntary arrangements on repayment.
Gov.uk makes it clear that this is protection from eviction if you cannot pay your commercial rent right now, because of the pandemic. It is not a rent holiday, and commercial tenants will still be liable for the rent.
For more information, please visit GOV.UK’s official take on this.