The Government has provided funding to support businesses that have been required to close nationally since 23 March 2020 and remain closed. This scheme is open from 1 November 2020 to April 2021.
*Grants can be claimed from 1 November 2020 to 4 November 2020, business will then have to apply for the Local Restrictions Support Grant (Closed) scheme*
Who can claim this funding?
Businesses that have been required to close due to national restrictions imposed on 23 March 2020 and have not been able to re-open, which include:
- Nightclubs, dance halls, and discotheques
- Adult entertainment venues and hostess bars.
The business must have been trading on 22 March 2020, and the person who the council hold as the ratepayer on 1 November 2020 will be eligible for the grant.
Are there any exclusions which apply?
The following exclusions apply to this scheme. Do not apply for a grant payment if any of the following apply:
- Business listed above will not be eligible if they have re-purposed their business and as a result have been able to open, for example changing their business from a nightclub to a bar
- Businesses which have already received grant payments that equal the maximum levels of State aid permitted under the 'de minimis' and the Covid-19 Temporary State Aid Framework
- For the avoidance of doubt, businesses that were in administration, are insolvent or where a striking-off notice has been made as at 31 October 2020 are not eligible for funding under this scheme.
How much will I receive?
Grants are awarded in 14 day cycles starting on 1 November 2020. Each 14 day period the business is closed will entitle the business to an additional payment, providing the business has remained closed.
If you are awarded the grant the payment will be:
|Rateable Value (RV) || Grant Payable |
| RV of £15,000 and under || £667 every 14 days |
| RV of £15,001 but less than £51,000 || £1,000 every 14 days |
| RV of £51,000 and over || £1,500 every 14 days |
What evidence do I have to provide?
The council reserves the right to request any evidence, explanation or proofs that it deems necessary and reasonable, in order to properly assess an applicant’s entitlement to a grant award. This condition applies at any time during or after the application process.
If an applicant fails to satisfy all reasonable requests made by the council, the council reserves the right to either not pay an award, or request the repayment of an award already paid. Any refusal to cooperate with the council will result in the rejection of the application and any grant payments already made, will be recalled.
Is this grant taxable?
Grant income received by a business is taxable. The Local Restrictions Support Grant will need to be included in your tax return.
Only businesses which make an overall profit once grant income is included will be subject to tax.
When will I get paid?
We will aim to pay the funds into the nominated bank account within 14 days of receiving the application. Payments will be made for each 14-day period of closure from 1 November 2020, once a business has been closed for 14 days.
Business who are eligible for this grant will receive payments under the LRSG (Closed Businesses) scheme, therefore a payment will only be made under this scheme for the period 1 November 2020 to 4 November 2020, and payments will then be made in line with the Closed Business scheme.
Please note: where your business is a limited company, you MUST provide the bank account details for the company and not provide a personal bank account. Payments will be delayed where personal bank details are provided.
What is State Aid?
State aid is any advantage granted by public authorities through state resources on a selective basis to any organisations that could potentially distort competition and trade in the European Union (EU).
The definition of state aid is very broad because ‘an advantage’ can take many forms. It is anything which an undertaking (an organisation engaged in economic activity) could not get on the open market.
State aid rules can (among other things) apply to the following:
- tax breaks, including enhanced capital allowances
- the use or sale of a state asset for free or at less than market price.
The rules can apply to funding given to charities, public authorities and other non-profit making bodies where they are involved in commercial activities.
Can I get more than one grant if I have multiple businesses?
Eligible businesses that are within the relevant local authority area covered by localised restrictions will receive a grant for each eligible property. However, businesses must remain within the financial thresholds set by state aid law, which may be reached if businesses have previously received state aid funding.
What do I do if there are changes to my business?
During the period of the scheme, it is your responsibility to notify the business rates section at email@example.com of any key changes in your circumstances i.e. permanent closure of a business/cease trading, as soon as possible.
What happens if there is a widespread national lockdown?
In the event of a widespread national lockdown, payments under this scheme will cease to apply and businesses will receive funding from the Local Restrictions Support Grant (Closed) scheme. Any LRSG (Sector) payments due to be made between national restrictions being announced and them coming into force will be calculated pro-rata, therefore businesses should expect to get payment from 1 November to 4 November.
Fraud and Error
The Government will not accept deliberate manipulation and fraud, and any business caught falsifying their records to gain additional grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error.
The council will carry our pre and post payment checks on all grant payments.
Where the council find that a business was not eligible for the scheme, the business will be liable to re-pay any grants paid.
How do I apply for the grant?
A member of the business rates team will contact you to obtain details to make payments to eligible businesses. However, you MUST apply for the LRSG Closed Business grant to receive payments from 5 November 2020.