Could you be eligible for a Local Authority Discretionary Grant?

If your business did not qualify for the Small Business Grant Fund or the Retail or Leisure and Hospitality Fund, but has been significantly affected by the impact of coronavirus, then you may be eligible for a Local Authority Discretionary Grant.

 

What is The Local Authority Discretionary Grant?

These grants are entirely at the discretion of your local authority. In the first instance, you should check with your local council, you will also need to meet these specific criteria:

– Small and micro businesses;

– 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 property, or part of a property, with a rateable value or annual rent or annual mortgage payments below £51,000.

Local authorities have been asked to prioritise the following business types:

– Small businesses in shared offices or other flexible workspaces. Examples could include units in industrial parks, science parks and incubators which do not have their own business rates assessment

– Regular market traders with fixed building costs, such as rent, who do not have their own business rates assessment

– Bed & Breakfasts which pay Council Tax instead of business rates

– Charity properties in receipt of charitable business rates relief which would otherwise have been eligible for Small Business Rates Relief or Rural Rate Relief.

This grant funding is for businesses that are not eligible for other support schemes. Businesses which have received cash grants from any central government COVID-related scheme are ineligible for this funding, apart from those using the Self-Employed Income Support Scheme.

 

Businesses who intend to apply or already using the Coronavirus Job Retention Scheme or any of the Government backed loans (such as CBILS or Bounce Back Loans) may still be eligible should they meet all the above criteria.

 

How much funding will be provided to businesses?

– A maximum grant of £25,000

– Second highest grant amount is £10,000

– Grants below £10,000 can consist of any figure as deemed appropriate by the local authority

The grant is subject to tax – however only businesses which make an overall profit once the grant income is included will be subject to tax.

 

How does my business apply for the Local Authority Discretionary Grant?

You’ll need to contact your local council to see what process they have put in place to handle applications. You can find your local council by clicking here.

 

For information on other aspects of coronavirus support please see our hub, contact your usual PM+M representative, or call 01254 679131 and ask to speak with one of our experts.

 

 

This information is correct as of 29 May 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.

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