Sandwell firms turning down coronavirus grant support leaving millions unclaimed
Some businesses have turned down government coronavirus support grants while others have blanked repeated attempts to get them to apply, a local authority has said.
Sandwell Council has one of the worst records of any local authority in the country when it comes to paying out small business grants, which were launched by ministers to help firms survive the coronavirus lockdown.
According to official data, the council has paid out to around 40 per cent of companies, leaving millions unclaimed.
But the authority has today hit back, saying it has processed almost 70 per cent of grants requested by businesses.
Bosses say a number of firms have said they don't need support, while others have failed to respond to council efforts encouraging them to apply.
At the start of the month the council wrote to thousands of businesses in a bid to process and verify claims.
It did not hold bank details for 96 per cent of the firms believed to be eligible as they do not pay their rates by direct debit, bosses said.
The council says grants worth £34.4m have been paid to more than 3,000 businesses.
According to the Department for Business, Energy & Industrial Strategy, 5,887 firms across the borough are eligible for total funding of around £73m.
The Government launched two funds in March, enabling local authorities to award grants of between £10,000 and £25,000 to help small businesses get through the lockdown.
Council Leader Councillor Yvonne Davies, said: "We can only help those businesses that reply to us and apply for a grant, so if you think your business qualifies for one and you haven’t yet replied to us, please do get in touch as soon as possible.
"We have now processed 68 per cent of requests we have received and I would like to thank our officers for working flat out to check and process thousands of applications to get these vital funds to our businesses."
Deputy council leader, Councillor Wasim Ali, said: "We have put extra resources into telephoning potentially eligible businesses that did not reply to the letter we sent them at the start of April.
"A number of those businesses have said they do not require a grant – but we need to stress that if any businesses have not yet replied, we can’t process their grant. They need to apply for us to verify and process a claim.
"Most businesses can expect to receive a payment within two weeks of submitting a claim."
By the start of this week Sandwell Council says it had paid 3,008 firms, including 2,559 small business grants of £10,000; 161 retail hospitality and leisure grants of £10,000; and 288 retail hospitality and leisure grants of £25,000.
Visit www.sandwell.gov.uk/supportforbusinesses to check eligibility criteria.
