200 businesses boosted with vital cash funds

The local firms have received grants worth £5,000 to help keep them afloat due to loss of trade created by the coronavirus pandemic.

The funds were part of Round 2 of the Discretionary Grant Fund and the £1 million fund was fully allocated within 17 days of the scheme being launched, which the council has now closed.

Cllr Ged Bell, cabinet member for Employment & Culture at Newcastle City Council said: “These are challenging times for business – particularly SMEs who are struggling to keep their head above water.

“Through this fund, we have been able to get vital funds to around 640 businesses who were excluded from previous financial support from government.

“Our business support team worked flat out to process applications and get this much-needed cash direct to business owners as quickly as possible.

“Sadly, our allocation was only £3.2 million for Round 1 and 2 of the Discretionary Grant Fund, which wasn’t enough to help all small businesses in the city and we will continue to lobby government on their behalf to get more funding to keep our local economy going.

“Although this grant scheme is now closed, we want to reach out and help SMEs in Newcastle. We have business support schemes in place, including expert advice and help, and I would urge businesses to get in touch and access this help so we can support the local economy through this economic crisis.”

Councils around the country were given additional funding to support small businesses outside the scope of earlier grants, with criteria set by government on the type of business eligible for support.

There was a high demand for Newcastle’s fund, which saw £3.2 million allocated within ten weeks, with grants landing in bank accounts within ten days.

In total, Newcastle City Council has administered around £60 million in emergency funding to Newcastle firms.

The council are urging business owners to get help and advice at www.newcastle.gov.uk/covidbusinesssupport

The council is working closely with a range of partners, including NE1 and NGI. Together they will support businesses across the city, proactively reaching out to eligible companies, signposting and gathering intelligence to help inform potential new packages where gaps are identified.