Newcastle businesses welcome multi-million pound council cash injection
A hairdressing salon has received a cash injection from Newcastle City Council, to replace loss of earnings as a result of the coronavirus pandemic.
The authority has granted over £32m to more than 2,500 local businesses in order to protect the economy during difficult trading conditions caused by Covid-19.
Y Salon, based in the city centre since 1984, is one of 450 small firms to have benefitted from a fast-tracked payment from the council’s business support team, which is distributing grants between £10k and £25k to eligible companies.
Angela Lowery, who owns the salon, said: “We’ve been in business for over 37 years and we’ve made it through three recessions. However, Covid-19 came from nowhere and hit us sideways; we weren’t prepared for that and we had to stop trade overnight.
“The government were really quick to act and stepped in, throwing us a lifeline by providing us with a grant. Without it, I believe we probably would have not survived.”
The salon, like other small businesses in the area, will also benefit from business rate-free year.
Cllr Nick Forbes, leader of Newcastle City Council, said: “The coronavirus isn’t just a health crisis, it’s an economic crisis too. We know that every business in the city is struggling now.
“That’s why as a council, we’ve acted really quickly to get business support grants directly into bank accounts of small businesses with over £32 million paid out to 2,500 businesses so far.
“We want to ensure that all businesses get the help they need now to forge a future and get back to trading.”
Newcastle City Council estimates that 4,500 businesses in the city meet the government’s funding criteria.
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