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Coronavirus - grants for businesses and charities

Find out about financial support and grants available from central and local government for businesses and charities during the COVID-19 outbreak.

COVID-19 - Business support grant funding
The government recently announced new support grants for accommodation, hospitality and leisure businesses for cities that were in HIGH (Tier 2).
There are also grants available for businesses that legally have to close under the new National Restrictions - between Thursday, 5 November and Wednesday, 2 December.
The council are administering these grants on behalf of the government.
Read more about eligibility criteria and when you can apply.

What support is the government providing during the local and national restrictions?

Government have provided a range of Local Restriction Support Grants to support businesses which are required to close or have been severely financially impacted during national and local restrictions. 

Which Business Rates grant may I be eligible for?

Monitoring of Grants

In order to monitor the outcomes and effectiveness of the scheme, East Riding of Yorkshire Council reserves the right to request any evidence, explanation or proofs that it deems necessary or reasonable. This is to satisfy the Department for Business, Energy and Industrial Strategy (BEIS) requirement that all grant recipients may be required to provide, on demand, all evidence and proofs to BIES as BEIS deems necessary. These conditions apply during and after the application process.

What is a Local Restriction Support Grant (Closed Businesses)?

The Government has announced funding to help support businesses that are required to close under national lockdown restrictions from 5 November 2020.

East Riding businesses can apply for the Local Restriction Support Grant (Closed Businesses) whilst national restrictions remain in place until Wednesday, 2 December 2020.

Who can claim this funding?

The person who was registered as the ratepayer of the property on 5 November 2020 and provide the following services, unless they provide an exempt activity:

  • Non-essential retail, such as clothing and homeware stores, vehicle showrooms (other than for rental), betting shops, tailors, tobacco and vape shops, electronic goods and mobile phone shops, and market stalls selling non-essential goods. These venues can continue to be able to operate click-and-collect (where goods are pre-ordered and collected off the premises) and delivery services
  • Hospitality venues such as cafes, restaurants, pubs, bars and social clubs; with the exception of providing food and drink for takeaway (before 10pm; and not including alcohol), click-and-collect, drive-through or delivery
  • Accommodation such as hotels, hostels, guest houses and campsites. Except for specific circumstances, such as where these act as someone’s main residence, where the person cannot return home, for homeless people, or where it is essential to stay there for work purposes
  • Leisure and sports facilities such as leisure centres and gyms, swimming pools, tennis and basketball courts, golf courses, fitness and dance studios, climbing walls, archery, driving, and shooting ranges
  • Entertainment venues such as theatres, concert halls, cinemas, museums and galleries, casinos, amusement arcades, bingo halls, bowling alleys, skating rinks, go-karting venues, soft play centres and areas, circuses, fairgrounds, funfairs, zoos and other animal attractions, water parks and theme parks. Indoor attractions at botanical gardens, heritage homes and landmarks must also close, though outdoor grounds of these premises can stay open
  • Personal care facilities such as hair, beauty, tanning and nail salons. Tattoo parlours, spas, massage parlours, body and skin piercing services must also close. It is also prohibited to provide these services in other peoples’ homes
  • Community centres and halls must close except for a limited number of exempt activities as set out below libraries can also remain open to provide access to IT and digital services - for example for people who do not have it at home - and for Click and Collect.

Are there any exclusions that apply?

The following exclusions apply to this scheme. Do not apply for a grant payment if any of the following apply:

  • Businesses that are not required to close and are outside the scope of the grant scheme , as defined by Government, and are therefore excluded
  • Businesses that are able to continue to trade because they do not depend on providing direct in-person services from premises and can operate their services effectively remotely, such as accountants or solicitors. 
  • Businesses that have chosen to close but not been required to will not be eligible for this grant.
  • 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 5 November 2020  are not eligible for funding under this scheme. 

How much will I receive?

If you are awarded the grant the payment will be:

 Rateable Value (RV)  Grant Payable
 RV of £15,000 and under  £1,334 for 4 weeks
 RV of £15,001 but less than £51,000  £2,000 for 4 weeks
 RV of £51,000 and over  £3,000 for 4 weeks

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 the 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. If the lockdown is extended after 2 December 2020, subsequent grants payments will be 4 weekly thereafter, while national restrictions apply and you will not need to re-apply once your application for this scheme has been approved.

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:

  • grants
  • loans
  • 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.

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 business.rates@eastriding.gov.uk of any key changes in your circumstances, for example, permanent closure of a business/cease trading, as soon as possible.  

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. 

How do I apply for the grant? 

Complete this application form to apply for the grant. Please do not contact us to chase your application as this may delay the process.  

Apply for a Local Restriction Support Grant for Closed Businesses

What is the Additional Restrictions Grants (ARG) scheme?

The Government has provided funding to support businesses who have been severely affected by the national and Local Covid Alert Level 3 (Tier 3) restrictions and are not eligible to claim a grant under the other available schemes, this grant is known as Additional Restrictions Grant.

*Grants can be claimed for period one from 5 November 2020 to 2 December 2020. The council will be flexible in reviewing this scheme for further payment periods. 

Who can claim this funding?

Eligible businesses for period one are:

  • Those which have been mandated to close, who do not have a rateable value and cannot claim under the Local Restrictions Support Grant schemes and have on-going fixed property related costs. Fixed costs are:
  1. Mortgage payments owed to a financial institution regulated by the Financial Conduct Authority
  2. Rent payments owed as a result of a contractual obligation though a tenancy agreement or licence to occupy 
  3. Rent payments owed as a result of non-contractual obligations but where it can be demonstrated that there is an agreement to pay in place and that agreement was operational on 4 November 2020, was legitimate, valid and continues to be so
  • Businesses who are not mandated to close but have been severely financially impacted by restrictions and:
  • Business is essential retail or part of the supply chain to the leisure, hospitality, retail and accommodation sectors
  1. suffered a minimum 30% reduction in turnover
  • Business which were trading on 4 November 2020
  • Businesses which are located within East Riding of Yorkshire boundary
  • For the avoidance of doubt, this includes those market traders not allowed to trade by law for the period 5 November 2020 to 2 December 2020

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:

  • Businesses which were not trading at 4 November 2020
  • 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 
  • Businesses being operated from home where there are no other non-domestic premises costs.
  • Applications from Partnerships which are being dissolved, or have been dissolved, will not be accepted.
  • Applications from bankrupt sole traders will not be accepted
  • Applicants not registered with HMRC, Companies House, or the Charity Commission. 
  • Any business premises, or premises being used in connection with the business, outside the East Riding of Yorkshire
  • Essential retailers (those that are permitted to remain open).
  • Businesses whose primary trade is take-away.
  • Financial Services businesses. 
  • Medical service providers.
  • Professional Services.
  • Post Office Sorting Offices.
  • Property related businesses such as property developers, building companies, buy-to-let businesses, estate agents and landlords (commercial and domestic).

How much will I receive? 

If you are awarded the grant the payment will be:

Businesses that have no rateable value:

 Annual fixed on-going property cost  Grant Awarded – for the period 5 November to 2 December
 Up to £5,000  £500
 £5,001 to £15,000   £1,334
 £15,001 to £50,999  £2,000
 £51,000 and over  £3,000

Businesses with a  rateable value:

Rateable Value  Grant Awarded – for the period 5 November to 2 December
 Up to £5,000  £500
 £5,001 to £15,000   £1,334
 £15,001 to £50,999  £2,000
 £51,000 and over  £3,000

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 Additional 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 28-day period of closure from 5 November 2020. 

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:

  • grants
  • loans
  • 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 business.rates@eastriding.gov.uk of any key changes in your circumstances, such as permanent closure of a business/cease trading, as soon as possible.  

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? 

Complete this application form to apply for the grant. Please do not contact us to chase your application as this may delay the process.  

Apply for a Additional Restrictions Grant 


What is a Local Restrictions Support Grant (Sector)?

 

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:

  • grants
  • loans
  • 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 business.rates@eastriding.gov.uk 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.

What is the Local Restrictions Support Grant (Open Businesses)?

The Government has provided funding to support businesses which are still open but severely impacted by Local Covid Alert Level 'High' (Tier 2) and 'Very High' (Tier 3), known as Local Restrictions Support Grant (Open). 

Funding is available from 1 August 2020 to April 2021.

*Grants can be claimed from 31 October 2020 to 4 November 2020*

Who can claim this funding?

Businesses which are eligible for the grant include:

  • hotels
  • hospitality sector
  • bed and breakfasts
  • leisure businesses. 

Business must:

  • have been established and trading on the day before we enter local restrictions
  • be the person who the council hold as the ratepayer on that date will be eligible for the grant
  • be able to demonstrate they have been severely financially impacted by restrictions and suffered a minimum 30% reduction in turnover
  • bed and breakfasts which are liable for council tax must have ongoing fixed property costs. Fixed costs are: 
  1. Mortgage payments owed to a financial institution regulated by the Financial Conduct Authority
  2. Rent payments owed as a result of a contractual obligation though a tenancy agreement or licence to occupy 
  3. Rent payments owed as a result of non-contractual obligations but where it can be demonstrated that there is an agreement to pay in place and that agreement was operational on 4 November 2020, was legitimate, valid and continues to be so

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 which are established after the introduction of the Tier 2 restrictions
  • 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 the day before we entered Tier 2 restrictions are not eligible for funding under this scheme. 

How much will I receive? 

Grants are awarded in 28 day cycles. Each 28 day period the business is severely impacted will entitle the business to an additional payment, providing the business has remained the same. 

Please note: as businesses must apply for the LRSG Closed scheme from 5 November 2020. 

If you are eligible for a grant under this scheme, the payment will be pro-ratad for the period 31 October 2020 to 4 November 2020.

Rateable Value (RV)  Grant Awarded - per 28 day qualifying restriction period
 RV of £15,000 and under  £934
 RV of £15,001 but less than £50,999  £1,400
 RV of £51,000 and over  £2,100
For bed and breakfast with no rateable value, the grant payment will be:
Annual fixed property costs  Grant Awarded - per 28 day qualifying restriction period
 RV of £15,000 and under  £934
 RV of £15,001 but less than £50,999  £1,400
 RV of £51,000 and over  £2,100

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 28-day period of closure from 31 October, once a business has been closed for 28 days. 

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:

  • grants
  • loans
  • 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 business.rates@eastriding.gov.uk of any key changes in your circumstances, such as 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 (Open) payments due to be made between national restrictions being announced and then coming into force will be calculated pro-rata, therefore businesses should expect to get payment from 1 November 2020 to 4 November 2020.

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?

Our application form will be available here shortly. 

What support is the government offering businesses regarding my business rates bill?

The Chancellor announced a number of measures to support businesses with effect from 1 April 2020.

As part of these additional support measures, the council has processed changes to the Retail Relief Scheme which means all retail, leisure and tourism properties will pay no business rates in 2020-21, regardless of their rateable value.

The existing Retail Relief Scheme previously covered retail properties only, with a rateable value up to £51,000, but the government has:

  • widened the Retail Relief scheme to include the leisure and tourism industry, including hotels, cafes, restaurants, nightclubs and gyms
  • removed the £51,000 rateable value ceiling level
  • decreed that children's nurseries occupied by providers on the Ofsted’s Early Years Register, and wholly or mainly used for the provision of the Early Years, will not have to pay business rates in 2020/21. There is no rateable value limit on the relief. 

All those businesses affected received a revised rates bill for nil.  All relief awards are subject to state aid 'de minimus' regulations.

The list below sets out the types of uses that the Government does not consider to be an eligible use for the purpose of this relief. 

Business premises that are being used for the provision of the following services to visiting members of the public:

  • Financial services (such as, banks, building societies, cash points, bureaux de change, payday lenders)
  • Medical services (such as, vets, dentists, doctors, osteopaths, chiropractors)
  • Professional services (such as, solicitors, accountants, insurance agents/Financial advisers)
  • Post Office sorting offices
  • Business premises that are not reasonably accessible to visiting members of the public. 

There is no rateable value cap on this relief for the financial year 2020/21 only.

Business Rates Grants

The government made three grants schemes available to help support businesses during this period. The funding was made available to help small, rural, retail, leisure and hospitality businesses with their ongoing business costs in recognition of the disruption caused by COVID-19. 

This grant scheme closed on 28 August 2020, no further applications are being accepted.

Discretionary Grant Fund

The government made available a limited pot of money in the East Riding for a local discretionary grant fund to help businesses who supply the retail, leisure and hospitality sectors that have not been able to access other forms of support, that have suffered a significant loss of income during the lockdown and that have not qualified for other forms of financial support. 

This grant scheme is now closed, no further applications are being accepted.

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