A discretionary fund has been set up to accommodate certain small businesses previously outside the scope of the business grant funds scheme. The govt. have pledged up to £617 million would be made available.
This is an additional 5% uplift to the £12.33 billion funding previously announced for the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF).
This additional fund is aimed at small businesses with on-going fixed property-related costs. We 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.
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 individual 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.
Small and micro businesses with fixed property costs that are not eligible for the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund may be eligible for the Discretionary Grants Scheme.
What you get
You can get a grant of £25,000, £10,000 or any amount under £10,000.
You may be eligible if your business:
- is based in England
- has relatively high ongoing fixed property-related costs
- occupies property (or part of a property) with a rateable value or annual mortgage/rent payments below £51,000
- was trading on 11 March 2020
You will need to show that your business has suffered a significant fall in income due to coronavirus.
Local councils will prioritise businesses such as:
- small businesses in shared offices or other flexible workspaces, such as units in industrial parks or incubators
- regular market traders
- bed and breakfasts paying council tax instead of business rates
- charity properties getting charitable business rates relief, which are not eligible for small business rates relief or rural rate relief
Local councils have discretion about how to prioritise this funding. Please check with your council for details of their scheme.
You cannot apply if your business is in administration, insolvent or has received a striking-off notice.
If you’re already claiming funding
You cannot apply if you’re already claiming under another government grant scheme, such as:
- Small Business Grant Fund
- Retail, Hospitality and Leisure Grant
- Fisheries Response Fund
- Domestic Seafood Supply Scheme
- Zoos Support Fund
- Dairy Hardship Fund
Businesses that apply for the discretionary grants scheme can still apply for coronavirus-related loans if they’re eligible.
Visit your local council website for more details and to apply. If you need further assistance please contact one of our business advisors: [email protected]