Second grants for small businesses - everything you need to know

The second grant will cover three months’ pay – June, July and August – to the value of 70% of the individual’s average monthly trading profits (capped at £6,570). As with the first grant, the second payment will be made in a single instalment. 

Rishi Sunak announces the extension of the SEISS

Self-employed people impacted by COVID-19 can still apply for the first SEISS grant, which is up to 80% of average monthly trading profits (capped at £7,500), until 13 July. So far, 2.3 million people have made £6.8 billion worth of claims through the SEISS. 

Those who have not claimed for the first grant can apply for the second, enabling those who have been impacted at a later date to access support. The eligibility criteria for the second grant is the same as the first and applications open in August. 

Eligible applicants should receive the money in their bank account within six working days of making a claim. 

Mike Cherry, National Chair of the Federation of Small Businesses (FSB) said: 

“Small firms have long been the backbone of the UK economy and these policies will help keep it that way. Keeping the self-employed and those who work in a small business attached to the labour market is crucial to prevent scarring of the economy – the package today gives certainty and support to millions.”

The Chancellor also detailed how the government plans to continue supporting UK businesses through the Coronavirus Job Retention Scheme (CJRS), which, so far, has enabled 1 million employers to furlough 8.4 million jobs. 

From July 1 2020, companies will be able to bring furloughed workers back part-time. Employers will be able to determine appropriate shift hours and patterns and will be responsible for paying the wages of those in work. 

Furloughed individuals will continue to receive 80% of their pay during the period they are unable to work until October. However, the amount the government contributes will change. 

• June and July:

  The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.

• August: 

  The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.

• September:

  The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.

• October:

  The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs, pension contributions, and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the employer's gross employment costs if the employee had not been furloughed.

   

  Source: gov.co.uk

Further guidance on the second SEISS grant will be published on Friday 12 June.

To find out more about alternative funding options available to small businesses, visit our coronavirus content hub or contact the Funding Options team directly.