Business Support Grants

Business Grants

On 3 March 2021, the Chancellor announced that he would be providing a one-off grant called the Restart Grant (RG) from 1 April 2021.

Restart Grants

7th April - Update regarding Restart Grants applicable from 1st April 2021

Central Government has recently released guidance pertaining to the administration of the Restart Grants effective from the 1st April 2021. The Government has mandated that the Council undertake extensive pre payments checks prior to the payment of ALL Restart grants.

This applies to all  previous grant recipients, consequently the Council will not be able to process Restart Grants as quickly as it has done with previous Business Support Grants, and please be aware that we may require additional information/documentation from you that hasn't previously been requested.

The Council will post updates on its website and social media outlets; in the meantime please refrain from contacting the Council to enquire about progress as staff resources are being entirely focused on undertaking the Government mandated checks as quickly as possible. The Council will contact you if further information/documentation is needed, and please ensure that you submit all documentation as set out in the application form to avoid delays.

Please note that the Council may contact previous recipients of business support grants for further clarification before Restart grants can be processed.

Please be aware that we are working through these additional requirements as quickly as possible.

This is a one-off business grant available to non-essential retail businesses (Strand One), and hospitality, accommodation, leisure, personal care and gym or sport business premises (Strand Two).

A new system of one-off Restart Grants is being introduced from April 2021, replacing the Local Restrictions Support Grants (LRSG).

These will be one-off payments to business rate-paying businesses, predominantly reliant on delivering in-person services for the general public, in the non-essential retail and hospitality, leisure, personal care and accommodation sectors.

  • Grants of up to £6,000 will be paid to non-essential retail business premises, to help them reopen safely.

  • Grants of up to £18,000 will be allocated to hospitality, accommodation, leisure, personal care and gym business premises. They may open later under plans set out in the government's 'roadmap' and will be more impacted by restrictions when they do reopen.

Who is eligible for a Restart Grant?

To qualify for a grant, a business must:

  • be registered for business rates;

  • be trading on 1 April 2021 (carrying on a trade or profession, or buying and selling goods or services in order to generate turnover); and

  • not be in liquidation, dissolved, struck off or subject to a striking-off notice.

    Businesses that have already received grant payments that equal the maximum permitted subsidy allowances will not be eligible to receive funding. Read more about subsidy allowances below.

Restart Grants for non-essential retail

These are aimed at business rate-paying businesses open to the public and mainly or wholly for the purposes of retail sale or hire of goods or services, where the primary purpose of products or services provided are not necessary to the health and well-being of the public.

The one-off payments are based on the business's rateable value on 1 April 2021. The payments available to non-essential retail businesses in premises are:

  • Rateable value of £15,000 or under: £2,667

  • Rateable value over £15,000 and less than £51,000: £4,000

  • Rateable value of £51,000 or over: £6,000.

Restart Grants for business in other eligible sectors

Here is a summary of the types of rate-paying business in the hospitality, accommodation, leisure, personal care and gym sectors that may be eligible for a Restart Grant.

  • Hospitality: a business whose main function is to provide a venue for the consumption and sale of food and drink. (Excludes take-aways).

  • Leisure: a business that provides opportunities, experiences and facilities, in particular for culture, recreation, entertainment, celebratory events, days and nights out, betting and gaming. (Excludes coach tour operators and tour operators).

  • Accommodation: a business whose main lodging provision is used for holiday, travel and other purposes. (Excludes private dwellings, education accommodation, residential homes, care homes).

  • Gym and sport: a commercial establishment where physical exercise or training is conducted on an individual basis or group basis, using exercise equipment or open floor space with or without instruction, or where individual and group sporting, athletic and physical activities are participated in competitively or recreationally.

  • Personal care: a business which provides a service, treatment or activity for the purposes of personal beauty, hair, grooming, body care and aesthetics, and wellbeing. (Excludes businesses selling personal care goods only, training centres for staff, and medical/health services).

    The one-off payments are based on the business's rateable value on 1 April 2021. The payments available to non-essential retail businesses in premises are:

  • Rateable value of £15,000 or under: £8,000

  • Rateable value of over £15,000 and less than £51,000 : £12,000

  • Rateable value of £51,000 or over: £18,000

New Rules on Grant Subsidy allowances

New national rules on grant subsidy allowances came into effect on 4 March 2021, which recipients of Covid-19 business grants schemes need to follow. These replace previous requirements to comply with EU State Aid rules.

Here is a broad summary of those requirements. Grant applicants will need to consult their own financial advisers if they have any questions about whether they comply with the government's new rules on subsidy allowances.

  • Under the 'Small Amounts of Financial Assistance Allowance', a single economic actor must not receive more than £335,000 in grants over any three-year fiscal period.

  • In cases where this threshold is reached, there is a further 'Covid-19 Business Grant Allowance' of a further £1,600,000 per single economic actor.

Beyond this threshold, there is a 'Covid-19 Business Grant Special Allowance' where applicants may be able to access a further allowance of funding up to a further £9,000,000 per single economic actor, subject to conditions

Ratepayers that qualified for a grant from the January lockdown will not have to submit a new application. However, due to the amount of pre-payment checks that the Government require us to carry out there will be a delay in payments being made. We will contact businesses that have received a grant payment since the January lockdown to confirm the additional information that we require.

Please refrain from contacting the Council at this time as this will only delay the checking process further.

The application form for new applicants will be launched later this month.