The Federation of Small Businesses wants more councils to offer financial support packages to small firms and self-employed people struggling through lockdown.
Thousands of SMEs, restaurants, venues, hotels and shops have either gone under or face going under since the pandemic hit.
Meanwhile many self-employed workers, particularly the recently self-employed, have found themselves struggling for support.
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The call comes after Lincolnshire County Council unveiled a £12 million grant scheme aimed at businesses in the region that have not benefited from the Government’s previous support schemes, and smaller businesses with 50 employees or less.
When that scheme launches, local businesses could benefit from up to £10,000 of funding, paid for out of the council’s reserves.
Lincolnshire County Council economic development spokesman Coun Colin Davie said: “Our small, local businesses are the backbone of the county economy – there are around 43,000 in Lincolnshire, and it’s vital we help those that have had no help to ensure they survive the financial impact of the pandemic.
“The focus will be on those businesses that have been unable to access the government’s Covid support schemes, such as those that are less than a year old or without premises or home-based.
“And there are likely to be separate pots of money for specific needs, such as a digital technology grant and a village shop grant. These will be launched on a staggered basis, with the general grant scheme opening first.
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“Once everything is in place, we’ll make sure businesses have time to collate the required information and documents before opening up the application process. After that, grants will be allocated on a first-come, first-serve basis.”
The main Lincs grant scheme launches on February 23, followed by the other schemes in early March.
The FSB said such help could prove priceless for thousands of company directors, the newly self-employed, and sole traders the wrong side of the income threshold who are unable to access the help they need.
It is urging local authorities in England to follow Lincolnshire’s example, or copy a support scheme for directors launched at the end of last month in Northern Ireland.
The FSB has even worked with accounting experts on proposals for how the º£½ÇÊÓÆµ Government can help business owners who have been left out of income support initiatives.
National chairman Mike Cherry said: “Times are tough for small businesses and the self-employed.
“The latest round of restrictions have brought renewed disruption and mounting financial pressure, with balance sheets already in a much worse state than when the pandemic began.
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“Current grants struggle to cover costs.
“It’s great to see Lincolnshire County Council at the forefront, leading the way by offering this additional direct grant scheme, in particular to those that have not yet received any financial help.
“With the support of central government, we would like to see other local authorities following suit and creating their own schemes to ensure these left out groups elsewhere in the country are given the support that is so desperately needed.
“Of course, this is not an endless pot of money and £12 million won’t stretch to cover all businesses that need the funds.
“The º£½ÇÊÓÆµ government needs to make sure it is stepping in, to help top-up funding where schemes are oversubscribed.
“While it should be up to local authorities which businesses would be eligible, we hope any council that follows Lincolnshire’s example will look favourably and generously on those who have been able to claim little or no help so far.”