It has been announced this week that small businesses across England could receive a grant from a new £2.2 billion fund created by Government.
Funding has already been transferred to local authorities who will be responsible for distributing the grants. The total money allocated to each local authority in each region has been calculated in proportion to local population size and estimates of the numbers of businesses required to close.
There are two grants available and both are subject to tax but, "only if there is an overall profit when grant income is included."
Clubs and recognised training centres (RTCs) are advised to check their local authority’s website for grant application details. It is the responsibility of the business to engage with their local authority and ensure that council officials have both contact and payment information for them.
Local Restrictions Support Grants
Designed for businesses with a rateable value that have been required to close due to the lockdown restrictions, including, non-essential retail, leisure, personal care, sports facilities and hospitality businesses. If a business has more than one qualifying property then they will receive more than one grant.
Local Restrictions Support Grant (LSRG (Sector)) Businesses that have been required to close due to the national restrictions introduced in March 2020, and which have not been able to re-open.
Local Restrictions Support Grant (LRSG (Closed) Addendum) Businesses that were open as usual, but were then required to close between 5 November and 2 December 2020 due to the national restrictions.
The amount of funding available per 28-day qualifying restriction period is dependent on the businesses rateable value:
< £15,000 = £1,334
£15,000 > £51,000 = £2,000
£51,000 > = £3,000
Additional Restrictions Grant
Designed for businesses that require further business support as a result of the Coronavirus pandemic, this is distributed at the discretion of local authorities. All Local Authorities in England, (except those who have already accessed additional enhanced business support settlements, namely: Liverpool, Lancashire, Greater Manchester, South Yorkshire, West Yorkshire, Warrington and Nottinghamshire) are eligible for funding under this scheme due to the widespread national restrictions that came into force on 5 November 2020.
Under the Additional Restrictions Grant, local authorities will receive a one off lump sum payment amounting to £20 per head in each eligible local authority when LCAL 3 or widespread national restrictions are imposed. Local authorities can use this funding for business support activities. This will primarily take the form of discretionary grants, but local authorities could also use this funding for wider business support activities.
Local Authorities are encouraged to develop discretionary grant schemes to help those businesses which – while not legally forced to close – are nonetheless severely impacted by the restrictions put in place to control the spread of Covid-19. This could include businesses which supply the retail, hospitality, and leisure sectors, or businesses in the events sector.
Local Authorities may also choose to help businesses outside the business rates system, which are effectively forced to close. Clubs and Recognised Training Centres which are not within the rating system should consider approaching their local authority to see what is available.
If you have any further queries or questions relating to these grants, then please contact the Legal Team on 023 8060 4223 or email firstname.lastname@example.org.