On Saturday 2 May 2020, the Government announced that the local business grant funds scheme would receive a 5% top-up aimed at closing the support gap for businesses that don’t qualify for the existing business rates relief.

Further announcements regarding this additional funding are expected this week.

This funding is aimed primarily at small (less than 50 employees) businesses with ongoing fixed property-related costs.

 

  1. Who Is Intended To Benefit?
  • Businesses in shared spaces;
  • Regular market traders
  • Small charity properties that would meet the criteria for Small Business Rates Relief;
  • Bed and breakfasts that pay council tax rather than business rate;
  • Local authorities may choose to make payments to other businesses based on local economic need

 

  1. Eligibility
  • Recipients must be able to demonstrate that
    • They are small (under 50 employees)
    • they have seen a significant drop in income due to coronavirus restriction measures.
  • Currently, the announcement of the additional grant details that payments will be made at the local authority’s discretion based on economic need.
  • Businesses eligible for current grant schemes will not be eligible for this new one

 

  1. How Much Are The Grants

The maximum grant is £25,000, alongside £10,000 grants and local authority discretion to make payments of any amount under £10,000.

 

  1. How to Access the Scheme
  • Details are to be announced shortly – you cannot apply before the Scheme is launched which is expected to be 4 May 2020

Barrons has put together a helpful guide to running your business during the coronavirus crisis.