Top-up to Local Business Grant Funds Scheme
Announced 1 May 2020: If you were outside of the scope of the Covid-19 Business Grant funds scheme then the extra funding announced yesterday “could” be good news for you and your business. A discretionary fund has been set up to accommodate certain small businesses previously outside the scope of the business grant funds scheme.
Up to £617 million is being made available to local authorities in England. This is on top of the £12.33 billion funding previously announced for the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF) – an additional 5% uplift), in total up to £617 million in funding. Exact amounts available for each local authority will be announced shortly.
This additional fund is aimed at small businesses with ongoing fixed property-related costs. Government are asking local authorities to prioritise businesses in shared spaces, regular market traders, small charity properties that would meet the criteria for Small Business Rates Relief, and bed and breakfasts that pay council tax rather than business rates. But local authorities may choose to make payments to other businesses based on local economic need. The allocation of funding will be at the discretion of local authorities.
Businesses must be small, under 50 employees, and they must also be able to demonstrate that they have seen a significant drop of income due to Coronavirus restriction measures.
There will be three levels of grant payments. The maximum will be £25,000. There will also be grants of £10,000. local authorities will have discretion to make payments of any amount under £10,000. It will be for councils to adapt this approach to local circumstances.
Further guidance for local authorities will be set out shortly.
If you have any immediate or urgent issues get in touch with us to discuss your options in these tough and uncertain times.