The help available for English businesses in Tier 1, 2 , 3 and 4 this winter

The tier restrictions continue to put huge pressure on bars, restaurants and attractions on what has already been a tough year.

In a bid to protect jobs and businesses from collapse, the government has put in place a raft of support measures which cover businesses forced to close and those that have seen custom fall away because of the pandemic. There are separate measures for the self-employed and for places like nightclubs that have not been able to open fully since March.

There are also a number of grants and loans available depending on each local authority.

Here is a run down of the main areas of support for businesses.

Furlough

The Coronovirus Job Retention Scheme, better known as the Furlough Scheme has been extended to April 2021.

Eligible employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.

Employers will have flexibility to use the scheme for employees for any amount of time and shift pattern, including furloughing them full-time.

Find out how to claim furlough support for staff here

There will be no employer contribution to wages expected as part of the scheme for hours not worked but firms can top up if they want to. Employers will only be asked to cover National Insurance and Employer pension contributions for hours not worked.

Employees that have since been made redundant but were employed and on the payroll on 23 September 2020 (the day before the Job Support Scheme announcement) can be re-employed and claimed for.

Help for self-employed people

The Self-Employment Income Support Scheme (SEISS) has been increased to meet 80% of trading profits covering November to January for all parts of the UK.

This provides equivalent support to the self-employed as we are providing to employees through the government contribution in the CJRS Furlough Scheme.

It is calculated based on 80% of 3 months’ average trading profits, paid out in a single installment and capped at £7,500.

HMRC will pay this more generous grant sooner than planned and in good time for Christmas –the window for claiming a grant will open on 30 November, two weeks earlier than previously announced.

A further grant is expected to follow covering February to April, the Government has announced.

More information on how to claim the Self Employed Income Support Scheme

Grants for businesses forced to close

Businesses which are forced to close due will receive up to £3,000 per month, depending on their rateable value, under the Local Restrictions Support Grant (LRSG Closed).

They can apply for up to £1,500 for every 14 day period of closure.

Grants for businesses that have stayed open

The Local Restrictions Support Grant (LRSG Open) supports businesses that have been severely impacted due to temporary local restrictions.

Eligible businesses can apply for a cash grant of up to £2,100 for each 28 day period.

For nightclubs, live music venues and adult entertainment businesses

The Local Restrictions Support Grant (LSRG Sector) supports businesses that have been closed since March.

Eligible businesses including nightclubs, dance halls, discos, adult entertainment venues and hostess bars are entitled to a cash grant of up to £1,500 for each 14-period of closure. It is available from local authorities.

Grants for other businesses

The Additional Restrictions Grant (ARG) supports businesses that are not covered by other grant schemes or where additional funding is needed.

It is down to individual local authorities to determine eligibility but is designed to support

businesses which supply the retail, hospitality, and leisure sectors
businesses in the events sector
business required to close but which do not pay business rates

Applicants can visit their own local authority website.

The Government has announced a £1,000 one-off grant for wet-led pubs for December. Eligible applicants are invited to apply through their local authority website.

Business loans

The application deadline for loan schemes has been extended to the end of March 2021. These are the BounceBack Loan Scheme, Coronavirus Business Interruption Loan Scheme, Future Fund, and Coronavirus Large Business Interruption Loan Scheme.

Lockdown Business Loans explained

Bounce Back Loan

The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.

The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 18 months, according to the latest announcement in February.

After that, the interest rate will be 2.5% a year.

The Coronavirus Business Interruption Loan Scheme (CBILS)

The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million.

The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.

The Coronavirus Large Business Interruption Loan Scheme (CLBILS)

The scheme helps medium and large sized businesses to access loans and other kinds of finance up to £200 million.

The government guarantees 80% of the finance to the lender.

The Future Fund

Provides government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.

These convertible loans may be an option for businesses that rely on equity investment and are unable to access other government business support programmes because they are either pre-revenue or pre-profit.

These loans came to an end on March 31 and have been replaced by the Recovery Loan Scheme.

A new Recovery Loan Scheme launched on April 6 and runs until December 31. It replaces the existing government guaranteed schemes that close at the end of March. Details on how to apply here.

Those businesses that have already accessed the Bounce Back Loan Scheme but have not borrowed their maximum amount can now apply to top-up their existing loan.

Find out and apply for a bounce back loan, more on how to apply for a Coronavirus Business Interruption Loan Scheme, for larger businesses there's information on applying for the Coronavirus Large Business Interruption Loan Scheme and the Future Fund gives loans between £125,000 to £5 million to innovative companies.