Additional financial support is now available to the UK’s smaller businesses, who may have been excluded from existing schemes through Local Authority Discretionary Grants.
Around £617 million has been made available to local authorities to support businesses that are struggling due to the Covid-19 pandemic. Councils now have the discretion to offer funding to:
- Small and micro businesses, as defined in Section 33 Part 2 of the Small Business, Enterprise and Employment Act 2015 and the Companies Act 2006.
- Businesses with relatively high ongoing fixed property-related costs.
- Businesses which can demonstrate that they have suffered a significant fall in income due to the COVID-19 crisis.
- Businesses which occupy a property, or part of a property, with a rateable value or annual rent or annual mortgage payments below £51,000.
Businesses that operate out of shared spaces, regular market traders, small charity properties that would meet the criteria for Small Business Rates Relief, and bed and breakfasts that pay council tax rather than business rates will all be prioritised under this scheme.
Three levels of grant payments will be available with the maximum being £25,000. There will also be grants of £10,000 and local authorities will have the discretion to make payments of any amount under £10,000.
It will be for councils to adapt their funding approach to local circumstances. Those in receipt of existing grants will not be able to claim this additional grant funding.
To learn more about this additional funding and to make an application, please click here.
To find out how our experienced team can assist you during these difficult times, please contact us.