News

November 27, 2009

Recovery funds launched for flood-damaged small firms

Firms damaged by the recent floods in the north of England can apply for funding to help them get back on their feet, following the launch of several recovery schemes from business support groups.

The recent floods have devastated homes and businesses in parts of Scotland, Lancashire, Cumbria and the north east of England. According to the Association of British Insurers (ABI), insurance claims from the damage are predicted to reach £100 million.

The Federation of Small Businesses (FSB) is offering its members in flood-hit regions interest-free loans of up to £5,000 to help them recover. "The loans are available immediately and firms can apply through their regional FSB offices," said FSB spokeswoman, Sophie Kummer.

The business group also called on local authorities in regions affected by the floods to provide support for businesses.

"The past 18 months have been difficult, so the last thing otherwise successful firms need is unpredictable weather and flooding to damage their prospects," said FSB national chairman, John Wright. "To ensure that the long-term damage to the areas affected is mitigated as best it can, all bodies, public and private, need to work together closely and effectively."

The North West Regional Development Agency (NWDA) has also launched a £1 million grant fund for firms in the North West, which they can access by contacting their local Business Link.

"We are the first point of contact for the businesses, and we can put them in touch with the NWDA," said Business Link adviser, Tom Bell. "There's a small amount of funding available for each business that has been directly affected, to help with professional fees and marketing support. The maximum grant available is £10,000.

"Our advisers have been involved in floods before, so we are able to allocate firms an adviser who knows what they need and can help them to put an action plan together," he added.

ABI spokesman, Jonathan French, said firms affected by the floods should contact their insurance company as soon as possible to ensure their claim goes through quickly. "If stock has been damaged, it's very worthwhile taking photographs of damaged goods for use as part of the claim," he said.

"Clearly there's been an increase in the volume of insurance claims from businesses and domestic householders since last weekend, but the scale of it is not even close to the floods of summer 2007," he added. "So insurance companies are well prepared, and they should be able to process claims and provide information quickly."

• For more information on recovering from the damage caused by the floods, visit the 'Affected by the Floods?' Section of the Business Link Northwest website