Business Grants and Loans
The Government have announced a range of grants and a new loan scheme to support businesses.
Coronavirus Business Interruption Loan Scheme
A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch next week to support businesses to access bank lending and overdrafts. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value. Businesses can access the first 6 months of that finance interest free, as government will cover the first 6 months of interest payments.
All of the banks including Natwest, Lloyds, Barclays, Metro Bank and Santander which are in Wood Green are accredited lenders of the scheme. For further details about the terms and application process including financial partners, please click here.
Business Bounce Bank Loan
The “Bounceback” loans will be available from Monday 4th May and once a short form is completed, the Loan should be paid out within 24 hours. Businesses can apply for a minimum of £2,000 and a maximum of one quarter of their last financial year’s turnover, with a cap of £50,000.
There is no size limit to a businesses for this loan so it means in our view it will be open to any company that meets the criteria which at present states they must of been trading before the 1st March 2020.
The Government is also covering all fee’s and interest over the first 12 months. At the present time, there is no information about how much the interest rate will be thereafter but the Treasury have said it will be very low. Please note that businesses who have already received a CBILS Loan will not be allowed to apply for this loan.
For further information about the Bounce Bank Loans and how to apply, please visit the British Business Bank Website here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/
The Government have announced Grants for Businesses. These are two separate grant schemes which are being administered by local authorities.
There is a £10,000 grant available to all businesses who pay no or little business rates up to the value of £15,000. Retail, leisure and hospitality businesses to pay no business rates for 12 months regardless of rateable value and get access grants of up to £25,000 (for those with a rateable value between £15,000 to £51,000). Both schemes are administered by Haringey Council and in most cases, will be paid automatically.
- If you pay by direct debit and require the grant to be paid into a different account, please complete the form on the website explaining your reasoning for this
- You may also be contacted to confirm that the information we hold for the business and rate payer is correct to enable us to make payment to the right recipient
- Businesses will not be entitled to receive both grants and therefore payment will only be paid for one eligible grant
Government guidance on the Small Business Grant / Retail, Hospitality & Leisure Grant has recently changed. Haringey Council now have to collect and verify your business information to make business grant payments. Help us to help you get your grant funding quickly by filling in the Grant Form as soon as possible. Also it has been brought to our attention that there are companies contacting small businesses to do this service for fee around £99. Please do not use these companies as this can be done by yourselves for Free either by completing the online or application form.
Businesses in Wood Green – If you need further assistance with completing the application, please contact the BID on email@example.com
For further information on receiving the grant in Haringey and to complete the online form, please visit the update page on Haringey Council website here.
For information about the Business Grants from the Government website including the guidance in full, please click here.