Are You Benefiting From the Government Small Business Grant Schemes?
In response to the Coronavirus, COVID-19, the government is providing support for small businesses through the Small Business Grant Fund and the Retail, Leisure and Hospitality Grant Fund however a new additional fund called the Local Authority Discretionary Grants Fund has been launched which is aimed at small businesses who are not eligible for the Small Business Grant Fund or the Retail, Leisure and Hospitality Fund.
How will the grant be provided?
· Your local authority will be responsible for delivering grants to eligible businesses.
How much funding will be provided to your business?
· Local authorities are providing grants to the value of £25,000, £10,000 or any amount under £10,000. The value of the payment to be made to a business is at the discretion of the local authority.
Who will benefit from these schemes?
· These grants are aimed at small* and micro** businesses
· Businesses with relatively high ongoing fixed property-related costs
· Businesses which can demonstrate that they have suffered a significant fall in income due to the COVID-19 crisis
· Businesses which occupy property, or part of a property, with a rateable value or annual rent or annual mortgage payments below £51,000
*A small business, must satisfy two or more of the following requirements in a year—
· Turnover: Not more than £10.2 million
· Balance sheet total: Not more than 5.1 million
· Number of employees: a headcount of staff of less than 50
**A micro business, must satisfy two or more of the following requirements—
· Turnover: Not more than £632,000
· Balance sheet total: Not more than £316,000
· Number of employees: a headcount of staff of not more than 10
Are you eligible?
You can apply for the Local Authority Discretionary Grants Fund if you are not eligible for other support schemes. Businesses which have received cash grants from any central government COVID-related scheme are ineligible for funding from the Discretionary Grants Fund. Such grant schemes include but are not limited to:
· Self Employment Income Support Scheme
· Small Business Grant Fund
· Retail, Hospitality and Leisure Grant
· If you have applied for the Coronavirus Job Retention Scheme you can apply for this scheme
· Only businesses which were trading on 11 March 2020 are eligible for this scheme.
· Companies that are in administration, are insolvent or where a striking-off notice has been made are not eligible for funding under this scheme.
How do you apply for the Local Authority Discretionary Grants Fund?
Establishing an application process is likely to take local authorities some time. It is unlikely that local authorities will commence providing these grants until they have spent their allocation from central government on the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant. Nevertheless we recommend that eligible businesses contact their local authorities to register their interest and suitability in being the Local Authority Discretionary Grants Fund.
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