Emergency grants given to 1,500 firms

Assistance totalling £19.2m

MORE THAN 1,500 of eligible Charnwood small businesses have received emergency grants totalling £19.2m to help them get through the coronavirus crisis.

The figures come as the government announces a new fast-track 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 10,090 payments had been made in Leicestershire as of April 19, with 1,525 made in Charnwood and 1,690 in North West Leicestershire according to research by the BBC Shared Data Unit.

The Charnwood figure equates to 55 per cent of eligible businesses with £19.2m handed out from a funding allocation of £32.5m, while the North West Leicestershire take up so far has seen 96 per cent of businesses receiving grants totalling £12.3m

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.

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.”

Coun 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 spokesperson said the speed at which different councils have paid the grants can vary depending on the number and mx of eligible businesses in the area.

The grants are only available through the business rates system to account holders (i.e 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.

The government has also announced a new fast-track 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.