Shortly after announcing the UK’s return to lockdown, the government extended the deadline to apply for the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS), which have provided such a crucial lifeline for many SMEs over the last few months.
While this came as welcome news, if you’ve already borrowed the maximum amount or you don’t want to take on any further debt, you might be wondering what other sources of funding you can access to tide you over in December.
Fortunately, you can apply for a range of grants, and because the UK is facing so many headwinds- not just the coronavirus but also Brexit- there are plenty available. Here’s a summary, grouped into broad categories.
Coronavirus business support
The government has established two pots of funding to offset the impact of the pandemic. The first is known as the Local Restrictions Support Grant, and it’s targeted at businesses that must close during the latest lockdown, such as sports facilities and the hospitality sector. The amount on offer depends on the rateable value of your property, starting at £1,334 for a value of £15,000 or less.
The other pot of funding is the Additional Restrictions Grant. Each local authority receives a share of the £1.1 billion provided by the government, which they can distribute as they see fit. All businesses could access discretionary funds during the first lockdown, but they proved extremely popular and ran out quickly.
You can apply for both of these grants through your local authority, although some aren’t handing out the discretionary funds yet. However, you can register for alerts with Swoop.
Growth
You can also apply for funding distributed by one of the 38 regional Growth Hubs dotted around the country. They offer grants of up to £5,000 to cover a specific project cost, which could prove useful if you moved your business online during the pandemic and you need a new website. It’s worth noting this funding is matched, so your company will have to put up the same amount as you claim.
Incidentally, the Growth Hubs are currently allocating the last tranche of finance received through the European Regional Development Fund (ERDF), which must be distributed by the end of the year. The government has announced it will replace the ERDF with the Shared Prosperity Fund, but the pandemic has delayed its launch.
Energy efficiency
Growth Hubs, and in some cases your local authority (check which applies to you through Swoop), offer grants for companies to become more environmentally friendly, for instance by upgrading heating equipment. You simply have to register for an audit of your premises, and you’ll receive a report detailing the extent of the improvements required. You can apply for 50% of the total cost, up to £25,000, but you have to pay upfront and then reclaim it.
Innovation
Innovation challenges have become more frequent lately as the government tries to incentivise firms to develop high-tech solutions to help solve problems caused by the pandemic. Innovate UK, the public body responsible for running these competitions, has accelerated its decision-making process, so you can now complete an application within six to nine weeks. The amounts available range from £25,000 to £2 million, but once again these grants are match funded.
It’s also worth keeping an eye on private foundations, like NESTA, which run corporate competitions on behalf of specific industries.
Brexit
Finally, if your business is involved in importing and exporting and you’re concerned about the impact of Brexit, then you can apply for funding from the Customs Grant Scheme. However, you can only use it to recruit or train staff who are responsible for completing customs declarations or to employ a trade consultant.
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