In response to the coronavirus pandemic and national restrictions now in place as from 5 November 2020, the Government has announced a new grant support package for businesses that have been forced to close.
How much will the grant be?
- For properties with a rateable value of £15k or under, grants will be £1,334 per 28 day qualifying period
- For properties with a rateable value of between £15k to £51k grants will be £2,000 per 28 day qualifying period
- For properties with a rateable value of £51k or over grants will be £3,000 per 28 day qualifying period
Eligibility for the grants
Eligible businesses are those that meet the following criteria:
- have a rateable value and pay non domestic rates (business rates)
- have been forced to close by government and include non-essential retail, leisure, personal care, sports facilities and hospitality businesses. A full list can be found on the closing certain businesses and venues in England page.
- were trading as of 4 November 2020
- are occupying a non domestic premises on the ratings list as of 5 November 2020
Businesses that have previously received a Small Business Grant payment (as they are in receipt of small business rate relief) in the first scheme can also apply for the council's Discretionary Additional Restrictions Grant (ARG) below.
Exclusions to the grant scheme
- businesses that do not have a rateable value and do not pay non domestic rates (business rates) these businesses may be eligible for a discretionary payment. Please see below for the council's scheme.
- businesses that were not occupying a non domestic premises as of 5 November or where the non domestic premises is classed as void
- businesses that were in administration, are insolvent or where a striking off notice has been made
- businesses that have chosen to close, but have not been forced to close as part of the national restrictions (these businesses may be eligible for a discretionary payment. Please see the council's scheme below)
- businesses that have reached state aid limit
How can I apply?
Applications have now opened as from 17 November 2020. You can apply for a Local Restrictions Support Grant (LRSG) - The deadline for applications is Wednesday 2nd December 2020
You MUST have your business rate reference number and enter it into your application form. If you do not not meet the criteria to apply for this scheme you can check to see if you are eligible for the additional restriction grant (ARG).
Additional restrictions grant (ARG)
A discretionary scheme is also running to provide additional assistance to businesses where they:
- are non- rated but have been mandated to close and are not eligible for the LRSG grant above.
- have not been mandated to close (both rated and non-rated businesses), but are adversely impacted by national restrictions and/or other factors associated with COVID-19
- have previously been awarded grants under the Small Business Grant Fund (SBGF) and Local Authority Discretionary Fund (LAGF) regardless of whether they have been forced to close in these current restrictions.
For full eligibility criteria and further details Additional restrictions grant (ARG). The deadline for applications is Monday 30 November 2020.
We can only make these grant payments by BACS. If you currently pay your business rates by direct debit we will use the bank details provided on the application form to check them against the details we hold on our records. If you currently do not pay by direct debit we will check the bank details provided on your application form to match those of the liable person or business and will use them to pay your grant to you. We will ask you for proof that the bank account details you have provided are correct as part of your application process.
State Aid rules
The local or national restrictions support grant and discretionary grant count towards state aid. Payments count towards the total de minimis State aid you're allowed to get over a 3-year period - €200,000. If you have reached that threshold, you may still be eligible for funding under the COVID-19 Temporary Framework. The limit for the framework is €800,000.
We will ask you to complete a declaration confirming that:
- you will not exceed the relevant State aid threshold
- you were not an 'undertaking in difficulty' on 31 December 2019. This applies only to the COVID-19 Temporary Framework
The undertaking in difficulty test does not apply to small and micro undertakings (less than 50 employees and less than EUR 10 million of annual turnover and/or annual balance sheet) unless they were already in insolvency proceedings, have received rescue aid that has not been repaid, or are subject to a restructuring plan under State aid rules
Grant income received by a business is taxable, therefore the local or national restrictions support grant and discretionary grant will need to be included as income in the tax return of the business. Only businesses which make an overall profit once grant income is included will be subject to tax.
The Government will not accept deliberate manipulation and fraud - and any business caught falsifying their records to gain additional grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error.
We will only use the information you provide to enable us to pay the local or national restrictions support grant and discretionary grant. Your data will be shared with BEISS for the purposes of data collection and we will keep the data securely for up to 6 years. The legal basis for this processing is that it is necessary for the performance of a task carried out in the public interest or in the exercise of official authority vested in the local authority.
More information on how we handle personal information and your rights under the data protection legislation can be found in our privacy notice.