Two government schemes are available to help businesses rebuild after the disruption of the Covid-19 pandemic. In this blog we look at the Restart Grant Scheme and Recovery Loan Scheme and how these could benefit your business.
Restart Grant Scheme
Businesses in certain sectors in England can apply for the restart grant scheme to help them reopen as Covid-19 restrictions are lifted, and businesses have been able to claim for these since 1st April via their local council.
The amount of the available grant varies by sector. For example, eligible businesses in the non-essential retail sector may be entitled to a one-off grant of £6,000, whereas eligible businesses in the hospitality, accommodation, leisure, personal care and gym sectors may be entitled to a one-off grant of up to £18,000.
Further details on the Restart Grant Scheme can be found here.
Recovery Loan Scheme
Businesses of any size can apply for a loan or overdraft of £25,001 and £10 million per business, or asset finance of £1,000 and £10 million per business under the Recovery Loan scheme, which runs until 3rd December 2021. You can apply for this type of loan even if you also have a Bounce Back loan or a Coronavirus Business Interruption Loan.
The terms and amount offered are at the discretion of the lender, but the Government guarantee 80% of the finance to the lender as an incentive to get involved. The borrowing business still remains 100% liable for the debt.
Further details are available on the Gov.uk website here.
