Coronavirus: West Midlands firms wait for lifeline grants
Businesses across the region have received more than £130 million in crisis grants – but more than half are still waiting for cash.
Up to April 27 firms in local authority areas in the Black Country and Staffordshire had been paid £135.4m in grants announced by Chancellor Rishi Sunak to support small and medium-sized businesses.
But the figures represent just 43 per cent of the £312.8m pot available, prompting business groups to urge councils to speed up payments in order to stop firms from going bust.
The latest Government figures show huge disparities between how quickly payments have been processed.
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Lichfield District Council paid 77 per cent of the 1,584 business properties flagged as qualifying for help, while Sandwell Council paid just a quarter of 5,887, leaving grants worth £55.7m still to be paid.
Dudley Council made a total of £22.4m in payments to 49 per cent of 3,952 businesses. Wolverhampton Council paid out £25m from a total pot of £53.5m, to 53 per cent if firms eligible. Walsall Council paid out £27.3m to 55 per cent of businesses.
South Staffordshire Council paid 65 per cent of businesses a total of £11.8m, while Stafford Borough Council has paid out £16.9m to almost three quarters of the firms flagged for grants.
Across the region nearly 12,000 businesses earmarked for the two schemes – which gives grants of between £10,000 and £25,000 – are yet to get any cash.
Mike Cherry, national chair of The Federation of Small Businesses, praised councils that are getting money into the hands of firms quickly.
A vital lifeline
But he added: "In other areas barely 10 to 20 per cent of the grants have been issued.
"It’s those areas that must act now if they want to see small businesses survive on their local high streets when we reach the other side of this crisis."
Richard Watts, chairman of the Local Government Association’s resources board, said councils were working hard to distribute the cash, with many setting up dedicated teams.
"Councils know these grants are a vital lifeline to businesses who may be struggling and worried about the future," he said.
"It has been a big task to set up and administer this new scheme in a matter of weeks but councils will continue to work at pace to ensure eligible businesses receive this vital funding as quickly as possible."
Business Secretary Alok Sharma said: "I am very grateful to local authorities who have been working flat out to ensure these vital funds get to hard-pressed small business owners.
"I urge everyone to keep working at pace to get the money where it is needed quickly."
Councils in race against time to get vital cash into hands of firms
Councils across the region are involved in a race against the clock to pay out nearly half a billion pounds in vital grants which could stop businesses from going under.
The government cash comes via two schemes, which are aimed at helping small businesses and those in the retail, hospitality and leisure trades survive the coronavirus pandemic.
The latest available figures show that up to April 27, around £7.6bn has been paid out to 614,181 business properties across the country – 61 per cent of the total grant funding allocated to local authorities.
Distributing the cash is a major logistical challenge for councils, the majority of which have set up dedicated teams to ensure that payments are made as quickly as possible.
To make a claim, businesses need to complete an online form before eligibility checks are carried out.
Calls
Wolverhampton Council has taken more than 3,500 calls regarding grants since it started the schemes on April 6, paying out around £25m to firms.
According to the Department for Business, Energy & Industrial Strategy, the authority has handed grants to 2,213 firms out of 4,144 identified as being able to receive cash, with a pot of £28.5m still to be paid out.
Councillor Harman Banger, cabinet member for city economy, said: "We are doing everything we can to support our small businesses to access this money, including proactively contacting businesses who are eligible and increasing the number of council staff working on processing the grants."
"If you’ve already filled in an online form but haven’t received your grant payment yet, please bear with us.
Rateable value
"We have staff on hand to support businesses who require help and advice with the online process.
"Rest assured, we will make sure every business is supported in whichever way possible."
Small business grant funding of £10,000 is available for all businesses in receipt of small business rate relief or rural rate relief – and have a rateable value of £15,000 or less.
Funding of £10,000 for retail, hospitality and leisure businesses is available for property with a rateable value of £15,000 or below.
And a cash boost of £25,000 is on offer for retail, hospitality and leisure businesses with property with a rateable value between £15,001 and £50,999.
