Check out the latest advice, service disruptions, information and support about Coronavirus
Business financial support
Following the recent developments relating to COVID-19, we are committed to supporting local businesses through this difficult time. These are uncertain times and we are working closely with our partners to determine how best we can support businesses in Derby, and will continue to keep this page updated as we receive further guidance.
The new national restrictions have now come into force meaning thousands of Derby businesses have been closed until Wednesday 2nd December. During this period of national lockdown two grant schemes will be running; the Local Restrictions Support Grant and the Additional Restrictions Grant. To help businesses determine which grant to apply for, we are asking businesses to answer these three questions:
- Are you registered for business rates within Derby City?
- Has your business got a rateable value?
- Has your business been forced to close?
You can see a list of businesses that have been forced to close.
If the answer to all these questions is yes then you should apply for the Local Restrictions Support Grant, if not, but you have still been impacted by the new four-week lockdown, then apply for the Additional Restrictions Grant.
Local Restrictions Support Grant
The Local Restrictions Support Grant is a mandatory grant for businesses that have a rateable value and that have been forced to close or stop their main business activity. For the four-week period of the national measures eligible businesses will receive one payment per property. The rate of payment for eligible businesses will be:
- For properties with a rateable value of £15k or under, grants to be £1,334 per four weeks;
- For properties with a rateable value of over £15k and below £51k, grants to be £2,000 per four weeks;
- For properties with a rateable value of £51k or over, grants to be £3,000 per four weeks.
Additional Restrictions Grant
The Additional Restrictions Grant is a discretionary scheme for those businesses who have been severely impacted by the new national lockdown but do not have a rateable value or have not been forced to close. The payments available for eligible businesses will be:
- For businesses that work from a shared workspace or do not own or rent their own business premises, grants to be £1,334 per four weeks;
- For businesses that own or rent their own business premises, grants to be £2,000 per four weeks;
- For businesses that own or rent their own business premises and are larger in size (based on headcount or total fixed cost base), grants to be £3,000 per four weeks.
As part of the application form, businesses will be required to explain the detrimental impact that the new national lockdown has had on their operations.
To apply, businesses will need to log into MyAccount and either:
- apply for the Local Restrictions Support Grant (LRSG)
- apply for the Additional Restrictions Grant (ARG)
If you have any queries about the application process, for the LRSG scheme contact the Business Rates team, titling the email ‘LRSG’ or for the ARG scheme contact the Economic Growth team titling the email ‘ARG’. Please don’t chase us checking on the status of your grant by phoning/emailing because it delays us processing the grants.
The government has announced and continues to announce support that is being put in place for businesses in the UK that have been affected by the COVID-19 public health emergency.
Statutory Sick Pay
The government will reimburse small to medium enterprises (SMEs) for the first two weeks of SSP claimed in relation to the COVID-19 virus. They will not need to see evidence of a GP Sick Note, just a record of absences. The rebate process is being developed currently and will be paid retrospectively from the 13th March 2020. The online portal is being developed, you can check here for more information.
Job Support Scheme
The Job Support Scheme, which was due to start on 1st November 2020, has been postponed as the Coronavirus Job Retention Scheme is being extended until December.
The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce. The scheme will open run for 6 months.
The company will continue to pay its employee for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.
Instead of a minimum requirement of paying 55% of wages for a third of hours, as announced last month at the launch of the Winter Economic Plan, employers will have to pay for a minimum of 20% of usual hours worked, and 5% of hours not worked.
The government will now fund 62% of the wages for hours not worked. This more than doubles the maximum payment to £1,541.75 a month. In the most generous case, the taxpayer will now go from funding 22% of wages to just under half.
Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria. Check if you are eligible for the Job Retention Bonus.
The Job Retention Bonus is a £1,000 payment to businesses who retain a worker in employment until at least the start of February 2021, when they had previously been furloughed during 2020.
Businesses can claim for the Bonus from 15th February 2021 until the end of March 2021.
Job Retention Scheme
The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers designed to support employers whose operations have been severely affected by Covid-19. This scheme has been extended until 31st March 2021.
Employers can use the portal to claim for 80% of furloughed employees (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage. Employers can use this scheme any time during this period.
The scheme is open to all UK employers that had created and started a PAYE payroll scheme on or before 28th February 2020.
GOV.UK has published guidance on how to claim wages through the Coronavirus Job Retention Scheme.
The government has increased its support to the self-employed under the Self-Employment Income Support Scheme (SEISS), ensuring people get paid faster than previously planned.
SEISS will support self-employed individuals (including members of partnerships) whose income has been negatively impacted by Covid-19.
- This scheme can provide a grant worth 80% of your average monthly trading profits in November.
- Grants will be paid faster than previously planned, with the claims window opening at the end of November rather than the middle of December.
- The increased support means £4.5bn is available for the self-employed between November and January.
- More businesses will also be able to benefit from government loan schemes which have been extended to the end of January, while firms can ‘top up’ existing Bounce Back Loans should they need additional finance.
- The eligibility criteria remains the same as the first instalment of the grant, with people needing to have had trading profits of no more than £50,000, making up at least half of their total income.
- The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.
- HMRC has published guidance on deciding if a businesses has been adversely affected by Coronavirus.
- Extended until 31st January 2021.
- Universal Credit is available to individuals who do not meet the criteria of other available support and grants.
- Find out more about Universal Credit and how to apply: Understanding Universal Credit
- The How to Claim Universal Credit – Step by Step Guide has information regarding eligibility, how to make your claim and how much you'll get.
Business rate relief
Businesses which fall into the below categories are being granted business rate relief for the 2020/2021 tax year:
- Hospitality - as hotels, guest and boarding premises or self-catering accommodation
- Leisure - including assembly properties, gyms, sports clubs or spas
- Retail - shops, restaurants, cafes, drinking establishments, cinemas and live music venues
- Nurseries - which are part of the OFSTED Early Years Register
Your local authority will recalculate and reissue the bill if necessary - you don't need to do anything. Check if you are eligible.
If you are unable to pay commercial rent
Commercial tenants who cannot pay their rent because of COVID-19 will be protected from eviction.
These measures will mean no business will automatically forfeit their lease and be forced out of their premises if they miss a payment up until 30th June. You will have to pay the liable rent, this is not a rental holiday.
Time to pay arrangement on tax liabilities
If you are struggling to pay your tax liabilities due to the challenges presented by COVID-19, you can arrange a Time to Pay agreement with HMRC by calling their COVID-19 Helpline: 0800 024 1222 Monday to Friday from 8.00am to 4.00pm. The exact arrangement will vary on a case by case basis.
Coronavirus Business Interruption Loan Scheme (CBILS)
The Coronavirus Business Interruption Loan Scheme (CBILS), is designed to support businesses that are viable but unable to obtain finance due to having insufficient security to meet the lender’s normal requirements.
- Supporting businesses with a turnover of up to £45m
- Delivered through commercial lenders, backed by the Government-owned British Business Bank.
- Multiple accredited lenders are able to offer the scheme, including all major banks.
- The Scheme supports business loans and overdrafts of up to £5m in value by providing a guarantee to the lender.
- The Government will not charge businesses for this guarantee, this scheme will also cover asset finance and invoice finance.
- Extended until 31st January 2021.
For more information, check the list of participating lenders.
Apply for the Coronavirus Business Interruption Loan Scheme on the GOV.UK website.
Coronavirus Large Business Interruption Loan Scheme (CLBILS)
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) provides financial support to larger businesses affected by Covid-19.
- This scheme helps medium and large sized businesses to access loans and other kinds of finance up to £200m.
- Providing facilities of up to £25m for businesses with a turnover from £45m up to £250m, and facilities of up to £50m.
- For businesses with a turnover of more than £250m who are suffering disruption to their cashflow due to lost or deferred revenues during the Covid-19 outbreak.
- Extended until 31st January 2021.
- More information about the CLBILS is on the British Business Bank website
- Apply for CBILS on the GOV.UK website
Bounce Back Loans
Delivered by Lenders Accredited by The British Business Bank, the BBLS targets small and micro businesses in all sectors, providing loans from £2k up to 25% of the business’ turnover with a maximum loan of £50k.
The BBLS enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% per year. The government will cover interest payable in the first year.
- 100% Guarantee: The scheme provides the lender with a government-backed, full guarantee (100%) against the outstanding facility balance, both capital and interest.
The borrower remains 100% liable for the debt.
- No Principal Repayments for first 12 months: Borrowers will not have to begin principal repayments for the first 12 months, thereafter capital will be repaid on a straight line basis.
- No Guarantee fee for Businesses or Lenders to Access the Scheme.
- Finance Terms: The length of the loan is for 10 years but early repayments are allowed, without early repayment fees.
- No Personal Guarantees: No personal guarantees are allowed, and no recovery action can be taken over a principal private residence or principal private vehicle.
- Extended until 31st January 2021
- More information about BBLS can be found on the British Business Bank website
Coronavirus Future Fund
Supporting innovative UK businesses with good potential that are essential in ensuring the UK retains its world leading position in science, innovation and technology.
- These companies typically rely on equity investment and are currently affected by Covid-19.
- Developed by government and delivered by the British Business Bank, the Future Fund will help these companies through the current period of economic disruption and recovery, so they are able to continue their growth trajectory and reach their full economic potential.
- The fund operates on a commercial basis to deliver an initial commitment of £250m of new government funding.
- Applications are submitted via an online platform.
- Extended until 31st January 2021.
The British Business Bank have published information about eligibility criteria and how to apply for the Coronavirus Future Fund.
It depends, a lot of commercial insurance policies cover a specific list of "notifiable" diseases, and COVID-19 was added to the government's list on 5 March 2020. Some insurance policies only cover a specific list of notifiable diseases, so it's worth checking the terms and conditions on your insurance policy. Other terms which would be relevant are: government ordered closure, pandemics, and unspecified notifiable diseases.
Redeployment Triage Service
D2N2 LEP is working together with Futures Career Service to support businesses that are looking to make staff changes due to COVID-19, whether that is redundancies or the requirement for additional staff short or long-term. Full information and contact details can be found on the D2N2 website.
Derby Employment Hub
Derby Employment Hub provides a personalised support service to empower participants with the skills, motivation, confidence and training to progress into work. This service is open to individuals who have found themselves out of work due to COVID-19 and we encourage employers who are letting staff go to direct them to the Employment Hub for support during this difficult time.
You can email Derby Employment Hub at DerbyEmploymentHub@derby.gov.uk or telephone 01332 640990.
Sources of support
- Gov.uk - Coronavirus guidance for employees, employers and businesses
- GOV.UK - Business and self employed
- East Midlands Chamber of Commerce
- D2N2 Growth Hub
- The D2N2 Growth Hub has also issued detailed advice for local businesses in the Derby area on their website however if you require further information or support, please telephone their helpline on 0333 006 9178.
- East Midlands Chamber of Commerce are also maintaining an advice page for local businesses.
- Chris Poulter, Leader of Derby City Council, has issued an open letter dated 26 March 2020, to businesses affected by coronavirus.