Grants and Government Schemes

The last six months have been tough for everyone, but especially for the SME sector.  Many businesses have struggled with the constant anxiety of reduced cash flow caused by the economic uncertainty resulting from the pandemic and the rules and regulations the Government have enforced to manage the virus.  Furthermore, the job market has been heavily impacted, having a disproportionate effect on the opportunities of young people gaining employment, further stunting the economy as a whole.

As a result, the Government has pledged £20 million in new grants to help SMEs recover from the effects of the coronavirus pandemic.  It has also instituted a new “Kickstart Scheme” to help employers fund 6 month job placements for younger people.

Grants

The Growth Hub funding will be open from midday on Tuesday 15th September.  Small and medium sized businesses will have access to grants of between £1,000 - £5,000 to help them access new technology and other equipment as well as professional, legal, financial or other advice to help them get back on track.  The grant will operate on a first come first serve basis and is likely to be popular so it is advised to make sure you submit your application as soon as possible.  To check eligibility and submit your application please use the following link

Who is eligible for this grant?

To be eligible for this grant:

• Must be an SME (including third sector organisations, social enterprises and trading charities)

• Needs to have been negatively impacted by COVID-19.

• Must have the ability to survive following the impact of COVID-19.

• Staff headcount must be below 250 FTE. Businesses with more than 250 employees will not be eligible.

• Must have a balance sheet of below €43million.

• Must have a turnover of below €50million.

• If the business has received state aid in the last 3 years the total should not be in excess of €200,000. Businesses exceeding this level of state aid funding will not be eligible. 

What expenditure is eligible?

The grant is available to help SMEs access one-to-one specialist advice to address their immediate needs. The grant must cover 100% of the cost of the service or product and cannot be used to part-fund expenditure.

Examples of eligible expenditure:

• Review of the business strategy, including strategic and business plans

• Coaching and mentoring in leadership and management development / Change management

• The introduction of new technology – apps to help with forecasting, cashflow and budgeting, for example

• Developing or revising marketing/digital strategies to reach new market

• Rebuilding a viable business model

• Skills analysis and development plans

• Employee engagement, welfare and wellbeing

Kickstart Scheme

The Kickstart Scheme provides funding to employers to create new 6-month job placements for young people who are currently on Universal Credit and at risk of long-term unemployment.

This is part of the government’s Plan for Jobs and aims to create hundreds and thousands of new, fully funded jobs across England, Scotland and Wales. The first placements are likely to be available from November.

Funding will cover for each job placement:

• 100% of the relevant National Minimum Wage for 25 hours a week

• the associated employer National Insurance contributions

• employer minimum automatic enrolment contributions

If you are interested in taking part in the scheme you can find all of the details using the following link.

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FUSE is an independent Chartered Certified firm of accountants and tax advisors based in Highgate Village, North London. We provide a dynamic range of services to clients working in property, media, entertainment and professional services. Our clients vary in size from self employed sole traders, small enterprises and medium size businesses. We believe that comprehensive financial planning and sound business financial advice are the keys to growth and profitability.