Covid-19 grant delay creates stress for NI businesses

Some business owners have said they have been left in a "very stressful situation" by delays in getting access to Covid-19 support funding.

Millions of pounds have been paid out by the executive, but some businesses said they have struggled to access the cash.

There are different schemes run by the finance and economy departments.

Both departments said they are working to make sure payments are made as soon as possible.

Cafe owner Gemma Carinduff is among those still waiting to receive a payment from Stormont.

She requested assistance from the Localised Restrictions Support Scheme in the first week it opened for applications, having previously received £10,000 of funding from another scheme earlier in the year.

It was announced by Finance Minister Conor Murphy in October to help firms closed by the so-called circuit-breaker including cafes, bars, restaurants and close-contact services such as hairdressers and beauticians.

It opened to applications on 19 October.

She said she has "not received any confirmation or anything to say that I will be receiving it".

She said: "It is very stressful. All your bills are coming out as normal and they've told you to close, you're not allowed to have anybody, no occupancy within the cafe."

Ms Carinduff, from Downpatrick, said her business had offered takeaways on a part-time basis, but described it as "not viable".

"There's not enough money coming through the door, it's not enough to pay a staff member, never mind pay all your overheads.

"Four weeks of having a rainy day is not a good situation for any business to be in."

Gemma Carinduff said continuing to only offer takeaways is not viable for her business

Hairdresser Lorraine Quinn from Moy, County Tyrone, said she finally received approval for funding on Wednesday, four weeks after she applied.

The measures were intended to last for four weeks, however, ministers have been divided on whether or not they should be extended.

Close contact services will now reopen on 20 November.

Like Ms Carinduff, Ms Quinn requested assistance from the Localised Restrictions Support Scheme.

She said: "On Wednesday I received an email to say that the grant application was a success, so it's fantastic.

"It's been really tough going for small businesses."

Ms Quinn, who has run her salon since 2001, said the "uncertainty" had caused difficulties in planning future spending.

She said: "I still have mortgage payments, I still have creditors and you also still have to pay your staff."

The Department of Finance said Land and Property Services "is working hard to process the applications as quickly as possible".

As of Thursday, it said £12m of payments have been issued to 3,224 businesses.

In total, more than 11,500 applications were made to the scheme and about 1,200 "have been identified as not meeting the criteria", it said.

The department said it expects the number of ineligible applications "to be greater as the process continues".

On Thursday it clarified that some businesses would have to wait five weeks or more from their initial application to receive funding.

Lorraine Quinn said she received confirmation of how much she would receive four weeks after applying

Finance Minister Conor Murphy said he understands the frustration of businesses waiting on support.

Speaking to BBC's Good Morning Ulster, he said: "On the scheme I had launched, there's been £10m pounds paid out on the ground already and several thousand businesses have been supported.

"That hasn't gone as quickly as I'd have liked it, but it is rolling out now and paying businesses."

The Department for the Economy runs a separate scheme - the Covid Restrictions Business Support Scheme - to help some small businesses who were left out of other schemes along with people who acted as suppliers to closed businesses.

That scheme is divided in two; Part A and Part B.

Part A of the scheme opened for applications on 28 October while the remainder of the fund - for suppliers - is yet to open.

Bangor-based driving instructor Gavin Sinclair said he applied two hours after Part A of the scheme opened and has only received a confirmation email.

"It hasn't progressed at all, they haven't even looked at the application yet," he said after checking its status on Thursday.

Gavin Sinclair said many driving instructors have been left concerned about their income

Mr Sinclair, who also chairs the NI Approved Instructor Council, continued: "It's not that we're waiting for the money to come through, we're still waiting to see if the application is even going to be processed or whether they're going to come back in two or three weeks' time and then ask for more clarity or more detail or more evidence we need to send over."

Mr Sinclair said he is only aware of a small number of the 1,200 driving instructors in Northern Ireland who have received money from the grant.

"Everyone's panicking, because not only are we worrying about whether we're going back, but we now have no other funds coming in from this scheme which was meant to be this all-singing all-dancing, saving grace for businesses that were struggling and have been let down repeatedly by it."

A spokesperson for the Department for the Economy said that, by Wednesday, 2,433 applications had been submitted to Part A of the scheme and "about a quarter of the applications have been processed to date".

"Nearly 60% have been either approved or recommended for approval for payment," the statement continued.

"It is anticipated that at least half of the applications submitted for CRBSS Part A will have been processed by the middle of next week."

The department added that in some cases there could be delays if further information was required for an application.