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.
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