The Chancellor set outs the Budget 2021, outlining a series of measures to support businesses impacted by the COVID-19 pandemic. We’ve summarised the key points you need to know.
Restart Grant Scheme
With the previous grant schemes ending on 31 March, the government will launch Restart Grants to help businesses reopen following the national lockdown. The value of these one-off cash grants will depend on the type of business.
- Non-essential retail will be eligible to receive up to £6,000 per premises
- Hospitality and leisure businesses including personal care and gyms will be eligible to receive up to £18,000 per premises
Local Authorities will also receive an additional £425 million of discretionary business grant funding to distribute.
More information on this scheme including details relating to the eligibility for this grant will be announced in due course.
Recovery Loan Scheme – Opens on 6 April
The new loan scheme will replace the existing Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLs) which end on 31 March. It will enable businesses of all sizes to access term loans, overdrafts, invoice finance and asset finance up to £10 million with the government providing an 80% guarantee to the accredited lenders.
More information on the scheme is available through the government website.
Future Fund: Breakthrough (launching early summer of 2021)
This new £375 million scheme will encourage private investors to co-invest with government in the most innovative, R&D-intensive businesses (e.g. those working in life sciences, quantum computing, or cleantech) that are aiming to raise at least £20 million of funding.
To be considered for the scheme you must be a UK based company with significant UK operations.
Further information on the Fund has been published on the British Business Bank website.
Support for Arts, Culture and Sports Venues
A £700 million package of support was announced to boost the arts, culture and sports sectors.
The Film & TV Production Restart Scheme will be extended to 31 December 2021.
Community Ownership Fund – First bidding round will open by June 2021
This new £150 million scheme will enable community groups to bid for up to £250,000 matched-funding to help them buy or take over local community assets (sports clubs, sporting and leisure facilities, cinemas and theatres, music venues, museums, galleries, parks, pubs, post office buildings, and shops) which are at risk of being lost, to run as community-owned businesses.
More information on the scheme has been published on the government website.