One in 5 small companies had no emergency support from Covid-19

Originally written by Timothy Adler about small business

One in five small businesses had no emergency aid from Covid-19 during the pandemic.

That’s around 1 million of the 5.9 million UK small businesses and sole proprietorships who have not received financial support, largely because they are not in retail, leisure or hospitality, according to the Federation of Small Businesses.

Retail, recreation, and hospitality have received vacation off business plans and have qualified for ongoing grants of up to tens of thousands of pounds.

> See also: Half a million businesses at risk of collapse without further support

However, companies that do not exactly fit the definitions of such sectors, including suppliers, are only eligible for about 10 percent of the grants, the association told the Times.

The FSB surveyed more than a thousand small business owners and found that one in five (22 percent) said they had not received government funding since the pandemic began.

A separate federal study found that one in two small businesses (51 percent) failed to receive a cash grant, and one in twentieth (5 percent) had received discretionary grants from their local authority, e.g. those offered to businesses outside of retail, leisure and hospitality .

Almost 90 percent of the additional £ 1.6 billion restriction grants promised in October have yet to be paid, according to the Events Industry Association’s own research.

> See also: Local Authority Discretionary Grants Fund – How it can help your business

In turn, local authorities have blamed the government for slow payment of Covid-19 grants during the lockdown, with companies still waiting for cash.

For example, despite the government claiming to have disbursed £ 4.6 billion in Covid-19 grants to be distributed by all 314 local authorities under the current national lockdown, it still needs the assistance first offered last year in the Local authorities release a value of GBP 12 billion.

The Local Government Association said councils were having difficulty distributing the money as state aid compliance issues increased and applicants were screened for fraud. They focused on getting larger amounts out of the January store closings as opposed to the smaller grants last year.

Mike Cherry, chairman of the FSB, said: “Small businesses selling to other businesses are more numerous than those selling to consumers, three to one – thousands are without business premises or fit perfectly with definitions of retail, leisure and hospitality. As a result, too many have been excluded from the support measures. “

More information on emergency aid from Covid-19

150 UK Small Business Grants To Apply Now – UPDATED

One in five small businesses had no emergency aid from Covid-19

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