The coronavirus Local Authority Discretionary Grants Fund supports small and micro businesses with fixed property costs that are not eligible for the Small Business Grant or the Retail, Hospitality and Leisure Grant Fund.
How does the fund work?
The fund is discretionary to allow local authorities to use their local knowledge and discretion but there are some national criteria set by the Government.
- Any grant award will be limited to one per business;
- The grant is classed as taxable income for those receiving it;
- Only businesses which make an overall profit once grant income is included will be subject to tax; and
- Grants are £25,000, £10,000 or any amount under £10,000.
If you already receive state aid
- The discretionary grants fund counts towards state aid;
- Payments of £10,000 or less 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;
- Payments of £25,000 count as state aid under the COVID-19 Temporary Framework. The limit for the framework is €800,000. Your local council will ask you to complete a declaration confirming that you will not exceed the relevant state aid threshold and you were not an ‘undertaking in difficulty’ on 31 December 2019.
Eligibility
National guidelines state that these grants are primarily and predominately aimed at:
- Small or micro businesses;
- Businesses based in England;
- Businesses that have high ongoing fixed property-related costs;
- Businesses that occupy property (or part of a property) with a rateable value or annual mortgage/rent payments below £51,000;
- Businesses that were trading on 11 March 2020; and
- Businesses that are not eligible for other support schemes including:-
– The Small Business Grant Fund;
– The Retail, Hospitality and Leisure Grant Fund;
– The Fisheries Response Fund;
– Domestic Seafood Supply Scheme;
– The Zoos Support Fund and
– The Dairy Hardship Fund.
Businesses that have applied for the Coronavirus Job Retention Scheme or the Self-Employed Income Support Scheme are still eligible to apply.
Companies in administration or are insolvent, including where there has been a striking off notice, will not be eligible to apply for assistance under this scheme.
How do you apply?
- Visit your local authority website to find out how to apply, the relevant links for our region can be found below;
- The application deadlines have now passed for many local authorities, however some deadlines have been extended;
- Following the application deadlines, your local authority will run an application process and decide whether to offer your business a grant.
Which businesses are the local authorities prioritising?
Local Authorities may decide what criteria makes most sense for their local area, and what the requirements will be for businesses applying for their grant schemes.
It is recommended that they prioritise:
- 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; and
- Charity properties getting charitable business rates relief, which are not eligible for small business rates relief or rural rate relief.
Application links for local authorities
Online application forms for your local authority can be found below.
- Closed to new applications on 23 June 2020.
- Closed to new applications on 23 June 2020.
- Closed to new applications on 23 June 2020.
North Norfolk District Council
- The second phase of applications is now open;
- This phase is to help businesses in certain registered business premises who have to date not benefited from any of the government support grants or the first phase of the Discretionary Grant.
- Closes to new applications at 5pm on 21 August.