Even though many emergency support schemes are now winding up, there are still sources of funding available for businesses trying to get back on their feet.
Most notable is the Government’s business recovery loan scheme, open for applications from small businesses until 30 June 2022.
But there are also sector-specific and regional grants, as well as some interesting tax reliefs such as for research and development (R&D).
Read on to see if your business qualifies for one of these routes to financial support in 2022.
Who can apply for a recovery loan?
You can apply for a recovery loan if your business’s turnover is less than £45 million per year. You’ll be able to apply for a loan of up to £2m, and the loan is 70% backed by the Treasury.
This guarantee gives lenders a level of reassurance, so the process for applying tends to be quicker and less cumbersome than applying for an ordinary business loan.
The deadline to apply for the recovery loan scheme was extended last year, and now eligible businesses have until 30 June 2022 to apply.
What sector-specific grants are available?
If you work in the following sectors, you may qualify for a grant.
Hospitality, leisure & accommodation
In December 2021, the Government announced the Omicron hospitality and leisure grant, making funding available through your local authority from January 2022.
You’ve got an unspecified date towards the end of February 2022 to apply for a grant under the scheme, depending on the authority.
You can apply through your local authority’s website and you should receive your payment by no later than 31 March 2022.
How much you receive depends on the rateable value of your business and you’ll either receive up to £2,477, £4,000 or £6,000.
Grants are available for businesses that are trying to bring a new product to market, or have a focus on innovation in some way.
This might include an original solution to a common problem, particularly if it involves brand-new innovative technology.
A number of providers will grant innovation funding, the main one being the Government agency Innovate UK.
How do regional grants work?
Local authorities, such as our own Croydon Council if you’re based in this area, can exercise their discretion in providing business grants.
Each council will have its own schemes, and support may be offered in the form of an interest-free loan, government-funded schemes for startups, or assistance with unlocking other types of finance.
Up until 18 October 2021, local councils were provided with grant funding through the additional restrictions grant, which supported businesses severely impacted by COVID-19 restrictions.
While the scheme is currently closed, it’s expected that additional funding will be made available. Keep an eye on your local council’s website for announcements.
Can you apply for R&D tax credits?
You could receive a cash injection or a corporation tax reduction, if your business is eligible for R&D tax credits.
So long as you’re in the business of resolving technological or scientific uncertainties, and taking a risk to do so, you’ll be eligible to apply.
This might look like creating new services, processes or products or changing/adapting ones which already exist.
Many businesses are surprised to see that they qualify, although it is important to prepare any claim robustly and in line with the rules. We can help.
It’s worth looking into, as the average annual claim value for SMEs is £57,000. Large companies claim £633,000 on average. As you can see, it can be a lucrative tax relief if you’re eligible.
Get in touch to discuss support for your business.