More than £3 million of government emergency coronavirus grants are still to be claimed by businesses in Mendip.

Emergency coronavirus funding for firms will go back to the Treasury at the end of the month if it is not claimed, the Federation of Small Businesses (FSB) has said.

Four months after £12 billion was released nationally to help them through the coronavirus pandemic, £1.5 billion is unclaimed.

The government has said it was working with councils to reach eligible businesses.

On March 17, the government announced emergency grants to help support small and rural businesses, as well as retailers.

The lump sums of £10,000 through the Small Business Grant Fund and £25,000 through the Retail, Hospitality and Leisure Grant Fund, were intended to help minimise disruption to cash flows.

As of August 3, £10.8 billion had been paid out to more than 882,920 businesses nationally, leaving £1.5 billion yet to reach nearly 80,000 eligible firms by late August, according to official data.

In Mendip, £32.7 million was initially given to the district, with 2,682 businesses being identified as being eligible by the start of August.

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As of August 3, 2,450 grant payments had been made totalling £29.6 million, which means that £3.1 million is still available to be claimed by the end of August, with the average sum paid out so far being £12,082.

FSB national chair Mike Cherry said: "Small businesses have been through what for many has been and will be the most difficult period they have ever faced, and while things are slowly starting to improve, we're not out of the woods yet.

"That is why we are making this call for small firms to apply as soon as possible so that they don't miss out on grant funding that could prevent a business from going under.

"Many councils have already handed out more than 90 per cent of their Small Business Grants which is good to see, but that means that more money remains which needs to be handed out.

"But as we recently said in a major FSB report, now is the time for the Government and the Treasury to make the next step.

"Back in May, a discretionary fund was set up to accommodate certain small businesses previously outside the scope of other grants, such as limited company directors and those in the supply chains of the leisure and retail sectors. Now is the time for this five per cent Discretionary Fund, to be repeated.

"We want to see this £617 million fund issued to councils so that they can help small businesses that may have missed out on initial funding or may not qualify for other grants.

"This will go some way to helping councils safeguard the future of the local businesses and communities.

"For small businesses, councils and government, now is not the time to delay. With some sectors still struggling to reopen and the spectre of a potential second wave of the virus, we must act now and take the necessary steps needed to prop up small firms who are the backbone of the economy."

A spokesman for the Department for Business, Energy and Industrial Strategy said: "We are working with local councils to ensure funds get to as many eligible small business owners as possible.

"Businesses that are eligible but have not yet received grant funding should speak to their local council as soon as possible."