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<p>The Retail, Hospitality and Leisure Grant Fund (RHLGF) is a specific fund that
is run by local authorities and linked to business rates. Most farmers are exempt
from business rates so the rationale and operation of this scheme is unsuitable for
the farming sector.</p><p> </p><p>The department has been in close discussion with
banks to ensure the farming sector has access to financial support to ease cashflow
problems during this period, including through the HMG backed Coronavirus Business
Interruption Loan (CBIL), and the Bounce Back Loan scheme, which was announced on
27 April, and is the latest step in a package of support measures announced by the
Chancellor. The Government will provide lenders with a 100% guarantee on each loan,
to give lenders the confidence they need to support small businesses. These loans
will be from £2,000 up to £50,000, capped at 25% of firms’ turnover, and the Government
will cover the first 12 months of interest payments and fees charged to the business
by the lender. Almost all UK businesses will be eligible to apply for a loan under
the scheme.</p><p> </p><p>In addition, we have temporarily relaxed certain elements
of competition law to support the farming sector during this period. Legislation will
be laid shortly to enable collaboration between dairy farmers and producers, supporting
them to adapt to changes in the supply chain including decreased demand from the hospitality
sector. The legislation will have retrospective effect.</p>
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