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Business help in the economic downturn

Last updated: 30 March 2010 15:12 UK

During the current economic climate, both existing businesses and new entrepreneurs are facing great challenges. We, working together with our partners, provide help or signposts to a variety of support initiatives to help local businesses to survive and grow.

Business Link, our primary business support partner, provides an overview of their support available. A survey report on business response to economic downturn and a Business Link Guide to Doing Business in Tough Times can be downloaded from the Associated Documents below.

Other central government and local authority initiatives are highlighted below.

Accessing finance - grants and loans

Real help for business

The government has launched a package of financial measures that will help enable banks to continue or resume lending to viable businesses with temporary cash flow difficulties. Detailed information can be found at Business Link website. The measures include:

£10bn Working Capital Scheme, securing up to £20bn of short term bank lending to companies with a turnover of up to £500m
Enterprise Finance Guarantee Scheme, securing up to £1.3bn of additional bank loans to small firms with a turnover of up to £25m (a clarification of the security issue can be downloaded from the Associated Documents below)
£75m Capital for Enterprise Fund (£50m from Government augmented by £25m from the banks) to invest in small businesses which need equity

Bridging Mezzanine Debt Fund (Transition Fund)

South East England Development Agency (SEEDA), working with Finance South East, has established the £3m Bridging Mezzanine Debt Fund (BMDF) to assist businesses. More information can be found at Finance South East website. Key elements of the BMDF are:

unsecured loan up to £148,000
up to one year term, which can be extended on request
no capital repayments or interest payments until maturity
rolled up interest so payment is at maturity
no notice to repay loan as other funding becomes available
no arrangement fees

Portsmouth Small Business Loan

From January 2009, Portsmouth City Council is offering a business loan called the Portsmouth Small Business Loan (PBGL). This is part of a wider package of small business support measures to help Portsmouth based companies grow and develop during the current economic downturn. You can find more details on our Portsmouth Small Business Loan page. The key points of the PBGL are:

established business seeking funding support to expand
maximum loan available to eligible businesses is £10,000
loan amount must be at least matched by both the business and/or its bank or other financial institutions
a fixed rate of interest, at a below market rate, will be applied to the loan
loan period will be for a maximum of three years
loan can be repaid in full at anytime without interest penalty
up to six month's payment holiday can be taken within the period of the loan
a personal guarantee will be required for the PSBL

Managing cash flow

Discounted Rent Scheme

Portsmouth Enterprise Centres (owned and managed by Portsmouth City Council) have started a discounted rent scheme to help small businesses. The discount will only apply to the sq ft element of the licence fee (no discount on the service charge, electricity fee or secretarial and meeting room charges). The rate of discount would cover the initial two years of trading at the following rates:

40% for first 6 months
20% for second 6 months
10% for the second year

A package of business advice by Business Link is also part of the scheme. Detailed information can be obtained from Alan Lowe, Enterprise Centres Manager, at 023 9282 6225.

Small Business Rate Relief

Any ratepayer who occupies a single property within England, where the rateable value (RV) is less than £15,000 will be entitled to the following relief:

£1 to £4,999 - 50% relief and a reduced non domestic multiplier
£5,000 to £9,999 - relief declining on a sliding scale and a reduced non domestic multiplier
£10,000 to £14,999 - reduced non domestic multiplier

The relief will also apply where a ratepayer occupies a main property with an RV of less than £15,000 but has ancillary properties with RV's of less than £2,200 each, if the total RV of all properties does not exceed £14,999. In this case relief will only be applied to the one main property. Contact the Local Taxation Section at localtaxation@portsmouthcc.gov.uk for further information.

Business Payment Support Service

From 24 November 2008, HM Revenue & Customs introduced a service to meet the needs of businesses which have difficulty in meeting tax, National Insurance or other payments owed to HMRC. HMRC will review the businesses circumstances and discuss various options tailored to their needs, such as arranging to make payments over a longer period. You can call their Business Payment Support Line on 0845 302 1435, opening hours are 8am-8pm Monday to Friday and 8am-4pm Saturday to Sunday. More information is available at HMRC website.

General business support

Starting your own business

Recent research done by Business Link indicates that starting their own business is still popular in Hampshire despite the current economic climate. Business Link continues to provide information, advice and workshops to help individuals with a business idea to start up their own business. The Business Link support line is 0845 600 9 006 and the website is www.businesslink.gov.uk/southeast/startupprogramme.

Business Health Check

Business Link offers a tailor made health check for businesses. This can ensure that the business is maximising its cash flow, optimising its marketing activity and developing realistic business plans for its future during the current economic climate. To book a health check, contact Business Link on 0845 600 9 006 or email them at info@businesslinksoutheast.co.uk. You can also visit their site.

Redundancy support

The Portsmouth City Council (PCC) works closely with Job Centre Plus (the Rapid Response Team) to offer help to affected workers facing redundancy with information on the local labour market, training opportunities, jobsearch skills, CVs, application forms, interview techniques, and career guidance etc. Workshops or a resource centre can be organised at the employers' sites or at local organisations, eg PCC, Next Step, Job Centre Plus. For detailed information, please contact Linda Taylor at 023 9284 1501 or email to: linda.taylor@portsmouthcc.gov.uk.