Small business grants are paid to only one in ten businesses


According to a Telegraph analysis, only one in 10 of the £ 10,000 and £ 25,000 of small business rescue grants have been paid to companies in certain regions of the country.

Overall, less than a third of a £ 12.3 billion small business fund has been distributed to small businesses, after being allocated to boards across England, according to the latest official figures. .

A Telegraph survey found that in some areas, boards distributed as little as 9% of government small business grant fund funds and a separate pot for small retail, hospitality and hospitality businesses. recreation, which was announced in the March 11 budget. .

Birmingham City Council has distributed £ 20.5 million of the £ 231.6 million allocated to it for passing on to small businesses.

Boards of Adur and Worthing in West Sussex paid only £ 7 million out of their £ 47.3 million allocation despite requests from 80% of eligible companies.

The disclosure is likely to fuel concerns about the pace of government measures to protect businesses, as businesses face “tight cash flow” as a result of the foreclosure.

This follows warnings that only a small fraction of businesses have received government-supported loans.

The Birmingham Council said it has now automated the process, which “will allow us to pay a large number of grants in the next few days.”

A spokesperson for the Local Government Association, who represents the councils, said that the authorities “were working fast” but that it had been “a major challenge” to deploy the new program “within a few weeks”.

The Ministry of Business, Energy and Industrial Strategy said: “About £ 3.7 billion in subsidies have been distributed to small businesses and the government is working hard to ensure that local authorities continue to pay this money to eligible businesses as quickly as possible. “

The East Suffolk Council paid £ 16.7 million – 16% of the £ 101.5 million allocation for its region.

The Small Business Grant Fund is intended to provide £ 10,000 each to eligible small and medium-sized businesses, which are expected to total 700,000.

The Retail and Leisure Segregated Fund provides either £ 10,000 or £ 25,000 depending on the assessed value of the business assets.

The LGA spokesperson said, “The boards are working quickly to ensure that companies eligible for this money receive it as quickly as possible. Many have put in place dedicated teams and redeployed staff to ensure they can process requests quickly.


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