Half of small businesses in Cov & Warks have received emergency grants

JUST half of the eligible small businesses in Coventry and Warwickshire have received emergency grants to help them get through the coronavirus crisis.

The figures come as the Government announces a new fasttrack loan scheme to try to support struggling small businesses.

On March 17, the Government announced emergency grants to help support small and rural businesses, as well as retailers.

The money is now being distributed by councils to eligible businesses and 7,661 payments had been made in Coventry and Warwickshire as of April 19.

That is the equivalent of 53% of the 14,422 businesses in the area identified by councils as potentially eligible, according to research by the BBC Shared Data Unit.

However, rates across the area varied from 42% of businesses in Coventry (1,923 out of 4,562) receiving a grant to 69% of eligible businesses in Nuneaton and Bedworth (1,166 out of 1,696).

Elsewhere in Warwickshire 44% of eligible Stratford-upon-avon businesses (1,238 out of 2,792) received a grant, while in Rugby 908 out of 1,609 (56%) received one.

In North Warwickshire 704 eligible businesses out of 1,164 (60%) received a grant, while in Warwick the figure was 1,722 out of 2,599 (66%).

In total, the initial funding allocation for Coventry and Warwickshire councils was £177.4 million.

So far £95.1 million has been given to businesses, an average of £12,410 each.

The funding available from the Government comes in two forms - a lump sum of £10,000 through the Small Business Grant Fund and £25,000 through the Retail, Hospitality and Leisure Grant Fund.

Across England, around £6 billion of £12 billion worth of funding allocated has been distributed to businesses under the two emergency grant schemes.

However, of the 965,000 businesses identified as eligible for the grants, 481,000 businesses have not yet received funds.

Federation of Small Businesses (FSB) national chair Mike Cherry said: “For many small businesses, access to these grants will decide the fate of their futures, and it’s excellent to see so many local authorities across England getting the money into the hands of those who need it most.

“Some councils have already handed out more than 80% of their grants, with a handful already reaching or about to reach 100%.

“However other areas barely 10-20% of the grants have been issued, it’s those areas that must act now if they want to see small businesses survive on their local high streets when we reach the other side of this crisis.

“The funding is there to be used to ensure we have a strong and robust economy to bounce back with once restrictions ease, so it’s inexcusable for any council to delay. Get the money out there and back our small businesses.”

Cllr Richard Watts, chair of the Local Government Association’s resources board, said councils had worked hard to distribute the funding, with more going out every day.

He said: “Many have set up dedicated teams and redeployed staff to run the scheme and ensure the risk of fraud is minimised.

“They have also had to reach out to eligible businesses they do not hold details for and, in some cases, it has taken time to get that information back.

“Councils know these grants are a vital lifeline to businesses who may be struggling and worried about the future.

“It has been a big task to set up and administer this new scheme in a matter of weeks but councils will continue to work at pace to ensure eligible businesses receive this vital funding as quickly as possible.”

A Department for Business, Energy and Industrial Strategy spokesman said the speed at which different councils have paid the grants can vary depending on the number and mix of eligible businesses in the area.

The grants are only available through the business rates system to account holders (ie those who own their business premises). As well as this, some high street retailers will not be eligible for the scheme as their property has a rateable value of more than £51,000.

On Monday April 27 the Government announced a new fasttrack finance scheme to provide small businesses with loans with a 100% government-backed guarantee for lenders.

The new Bounce Back Loans scheme, which will provide loans of up to £50,000, should be available within days.

The Government will guarantee the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.

The Chancellor of the Exchequer, Rishi Sunak, said: “Our smallest businesses are the backbone of our economy. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.”