14 Apr

Financial Support for Small Businesses & the Self-employed

Words Hannah George

In response to the Coronavirus pandemic, there has been an influx of grants, schemes and loans made available by the government, banks and reputable organisations. However, not everyone has been made aware of them - which is where we come in! WOTC have personally explored them all and have chosen the 6 most applicable grants, specially tailored to small business owners and those who are self-employed.

Small Business Grant Fund and Retail, Hospitality and Leisure Grant Fund (RHLGF).

The government will be supporting small businesses in the retail, hospitality and leisure sectors. There are two forms of the funding scheme that will support them in the financial year 2020/21 - the Small Business Grant Fund (SBGF) and the Retail, Hospitality and Leisure Grant Fund (RHLGF). A £10,000 grant will be provided to retail, leisure and hospitality businesses with a rateable value under £15,000 and retail, leisure and hospitality businesses with a rateable value between £15,001 and £51,000 can access a £25,000 grant. For more information on eligibility please visit GOV.UK.

2. Facebook Small Business Grants Programme

Facebook believes that a little financial help goes a long way and has acted upon it, offering 100 million dollars in cash grants and ad credits to assist small businesses with going digital in this challenging time. There are up to 30,000 small businesses in more than 30 countries that are eligible to receive this grant. A few of the essential requirements include having between 2 and 50 employees, running as a business for over a year and being in or near a location where Facebook operates. More information can be found via the Facebook website.

3. Business Interruption Loan Scheme (CBILS)

The government is supporting small and medium-sized businesses, with an annual turnover of up to £45 million. These businesses are given access to loans, overdrafts, invoice finance and asset finance of up to £5 million for up to 6 years. Small businesses in particular will benefit from this loan scheme. The government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, resulting in no upfront costs and lower initial repayments. They have also decided to provide lenders with a guarantee of 80% on each loan, which will encourage lenders to maintain the confidence to continue to provide finance to small and medium-sized businesses. For more information on eligibility please visit GOV.UK.

4. Self-employment Income Support Scheme

The Self-employment Income Support Scheme (SEISS) are providing grants to self-employed individuals or partnerships worth 80% of their profits, up to £2,500 per month. For the next 3 months, the scheme will enable you to claim a taxable grant of up to 80% of your trading profits of up to a maximum of £2,500 per month. There is also an opportunity for this grant to be extended if required. You will not have to apply for this grant as HMRC will contact you if you are eligible for the scheme and invite you to apply online. You can find out more via GOV.UK.

5. Enterprise Nation & Crowdfunder UK

Small businesses can set up a Pay it Forward campaign and offer customers the option to pre-book lovely incentives such as meals, a room for the night or a ticket to an event, as a response to a promise to deliver in the future. These fees will be covered by Crowdfunder, therefore everything is free and every penny you raise will go to you. For more information you can visit enterprisenation.com

6. Trouva

Many independent shops across Europe have had to shut down, but Trouva remains open. They are an online marketplace that can help showcase your boutiques to a global audience. Not only do they have a hands on team, 7 days a week, but they also help manage the logistics. To sell with Trouva you must be a boutique with a physical shop and fixed opening hours - in one of their current markets. Products can fall into one of these categories; homeware, fashion and lifestyle. If you are interested then do get in touch with their team via Trouva.com.

WOTC are currently offering a £5000 grant to 10 freelancers affected by COVID-19 - click the link below for more information.

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Hannah George - Online Editor

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