Lockdown restrictions are easing, and the UK is returning to normal. However, there are still many businesses that need help to re-open or to recover from the financial impact of COVID-19.
Depending on the nature of the business, some businesses may be eligible for a Restart Grant or a Recovery Loan.
What is a Restart Grant?
Designed to provide financial support to businesses that were forced to close during the pandemic, the Restart Grant Scheme is available to help businesses re-open.
From 1 April 2021, non-essential retail and businesses in the hospitality, leisure, accommodation, gym, and personal care sectors can apply for a Restart Grant. Applications must be made via local council websites.
To qualify for a Restart Grant, a business must:
- be based in England
- pay rates
- be trading on 1 April 2021
How much can I get?
The amount of the Restart Grant varies, and each local council will use their judgement to determine eligibility. Non-essential retail businesses can apply for a Restart Grant of up to £6,000. Sectors dramatically impacted by the pandemic such as hospitality, leisure, accommodation, gym, and personal care sectors can apply for a Restart Grant of up to £18,000.
What is the Recovery Loan Scheme?
To help businesses recover from the aftermath of Covid-19, the Recovery Loan Scheme has been introduced to provide businesses with access to business loans.
How much can I borrow?
The Recovery Loan Scheme is available to businesses of any size. These loans or overdrafts can be between £25,001 and £10 million per business or there is asset finance of between £1,000 and £10 million per business. Each lender will have its own criteria, so the amount offered will be different based on each lenders criteria. This scheme is due to run until 3 December 2021.
The Government has guaranteed 80% of the finance to the lender to encourage the lenders to participate in the new scheme. The borrower remains liable for 100% of the loan.
A business can apply for a Recovery Loan if it is trading in the UK. Applicants will need to show that their business:
- would be viable were it not for the pandemic
- has been adversely impacted by the pandemic
- is not in collective insolvency proceedings.
Providing they meet the above eligibility criteria even if a business took advantage of either a Bounce Back loan or a Coronavirus Business Interruption Loan, they can apply.
No personal guarantees are taken on provisions up to £250,000 and a borrower’s principal private residence can’t be taken as security.
Your business must have the relevant support it needs. Find out what other financial support is available by clicking the link below.
If you found this useful, please share it using the icons at the side of the page, or leave a comment below.
If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant
- You can ring us on 0151 380 8080
- You can email us at email@example.com