Coronavirus – Grant Support for Small Business

Coronavirus financial support for small businesses includes the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant Fund .

Small businesses, which currently pay little or no business rates and are eligible for small business rate relief (SBBR) or rural rate relief, are eligible for grants of £10,000 to help meet business costs.

The cash grants were made available through local authorities from early April. Eligible businesses should have been contacted directly with details on how to access the grant.

Businesses in the retail, hospitality and leisure sectors with a rateable value of between £15,000 and £51,000 will also have a rates holiday for the 2020 to 2021 tax year, and can apply for a £25,000 cash grant to support them through coronavirus.

Details on eligibility and how to apply for the grant should be directed to the relevant local authority.

Detailed guidance can now be found in

Grant Funding Schemes Small Business Grant Fund / Retail, Hospitality and Leisure Grant Fund Guidance for business

The Department for Business, Energy & Industrial Strategy has launched a dedicated helpline, where small business owners in England can get advice on how to minimise and cope with the impact of coronavirus. Contact 0300-4563565 or email enquiries@businesssupporthelpline.org

For further information on coronavirus business support, visit the gov.uk website.

Discretionary grants

In addition to the above, a discretionary fund has been set up to accommodate certain small businesses previously outside the scope of the business grant funds scheme.

Taxation

It is important to note that these grants are taxable and should be included in the accounts. That is because the government is making them available specifically to help with "ongoing business costs".

So the grants are of a revenue rather than capital nature and are thus taxable in the ordinary way.

Have you received your Small Business Grant or Retail, Hospitality and Leisure Grant?

When these grants were first announced it was made clear that local authorities would contact eligible firms in their area. But this does not appear to be the case in all instances. If you have not been contacted by your local authority, you should contact them as soon as possible to check on your entitlement.