Covid 19 – National Lockdown –Business Grant Schemes

New Business Support Schemes Announced

On 31st October the Government announced new support schemes for business as a result of the National Lockdown.

This support will come in one of three forms

  • The Local Restrictions Support Grant (Now open for applications)

    The Local Restrictions Support Grant (LRSG) supports businesses that were open as usual, providing services in person to customers from their business premises, but which were then required to close due to the National Lockdown. 

    It is for businesses that receive a business rate bill for their premises even if you don’t have to make any payment. Businesses that don’t receive a business rate bill may be eligible for support under the Additional Restrictions Grant Fund.

    Eligibility

    Your business may be eligible if it:

    • occupies property for which it receives a business rate bill even if you don’t have to make any payment

    • has been mandated to close by Government 

    • has been unable to provide its usual in-person customer service from its premises

    For example this could include non-essential retail, personal services or cafes/restaurants that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead.

    This funding will be provided on a rolling 28-day basis for as long the scheme remains in force.

    Some businesses may receive more than one grant where they have more than one eligible hereditament.

    What you will get

    Businesses occupying properties with a rateable value of exactly £15,000 or under on the date of the commencement of the widespread national restrictions will receive a payment of £1,334 per 28-day qualifying restriction period.

    Businesses occupying properties with a rateable value over £15,000 and less than £51,000 on the date of the commencement of the widespread national restrictions will receive a payment of £2,000 per 28-day qualifying restriction period.

    Businesses occupying properties with a rateable value of exactly £51,000 or above on the commencement date of the widespread national restrictions, will receive £3,000 per 28-day qualifying restriction period.

    • Grants will be based on the rateable value of the property on the first full day of local lockdown restrictions.

    Additional Restrictions Grant - Discretionary funding

    Test Valley Borough Council will publish details of discretionary funding scheme in the near future 

    Exclusions

    • businesses which are able to continue to operate during the lockdown because they do not depend on providing direct in-person services from their premises

    • businesses that have chosen to close, but have not been required to close as part of a local lockdown

    • businesses that are still subject to national closures such as nightclubs (There is a scheme for these properties, see The Local Restrictions Support Grant (Sector)

    • businesses that have reached the state aid limit

    Payments will be subject to state aid limits as the Local Restrictions Support Grant counts towards state aid. COVID-19 Temporary Framework. The limit for the framework is €800,000.

    Tax

    Grant income received by a business is taxable. The Local Restrictions Support Grant will need to be included as income in the tax return of the business. Only businesses which make an overall profit once grant income is included will be subject to tax.

    Apply here

     

  • The Local Restrictions Support Grant (Sector)

    Businesses that have been required to close due to national restrictions imposed on 23 March 2020

    Eligible businesses are:

    Nightclubs, dance halls, discotheques, Sexual entertainment venues and hostess bars

    Some businesses may receive more than one grant where they have more than one eligible hereditament.

    Payments will be made for each 14-day period of closure from 1 November 2020 and will not be backdated. In accordance with this timeline, Test Valley will make payments to eligible businesses every 28 days.

    It is possible that as part of future efforts to control the spread of coronavirus, further business property types are closed on an England-wide basis. If so, these businesses will also be eligible for these grants once they have been closed for 14 days.

    Businesses occupying properties with a rateable value of exactly £15,000 or under on the date of the commencement of the national restrictions will receive a payment of £667 per 14-day qualifying restriction period.

    Businesses occupying properties with a rateable value over £15,000 and less than £51,000 on the date of the commencement of the national restrictions will receive a payment of £1,000 per 14-day qualifying restriction period.

    Businesses occupying properties with a rateable value of exactly £51,000 or above on the commencement date of the national restrictions will receive a payment of £1,500 per 14-day qualifying restriction period.

    • Grants will be based on the rateable value of the property on the first full day of local lockdown restrictions.

    Payments will be subject to state aid limits as the Local Restrictions Support Grant counts towards state aid. COVID-19 Temporary Framework. The limit for the framework is €800,000.

    Tax

    Grant income received by a business is taxable. The Local Restrictions Support Grant will need to be included as income in the tax return of the business. Only businesses which make an overall profit once grant income is included will be subject to tax.

    Some businesses may receive more than one grant where they have more than one eligible hereditament.

  • Test Valley Borough Council Additional Restrictions Grant Scheme

    The scheme will run for the duration of the national lockdown. 

    TVBC’s Additional Restrictions Grant scheme will provide support to the following businesses:

    • Businesses in the Retail, Hospitality, Leisure and Events sectors that have not been forced to close but whose turnover has been materially affected by the closure of their direct customer base

    • Businesses that are not subject to business rates but have been forced to close. Including businesses such as Market Traders, Bed and Breakfast (Must be registered with Test Valley BC) and the Personal Services Sector.

    For businesses with a business rate account, support under this scheme will mirror The Local Restrictions Support Grant (Closed) scheme namely:Businesses occupying properties with a rateable value of exactly £15,000 or under, will receive a payment of £1,334 per 28-day qualifying restriction period.

    • Businesses occupying properties with a rateable value over £15,000 and less than £51,000, will receive a payment of £2,000 per 28-day qualifying restriction period.

    • Businesses occupying properties with a rateable value of exactly £51,000 or above, will receive £3,000 per 28-day qualifying restriction period.

    Grants will be based on the rateable value of the property on the first full day of national lockdown restrictions.(5th November 2020)

    For businesses not in rates, their rent will be used as a proxy for rateable value and the grant amount determined by this.For home businesses that have been materially affected where there is not significant business related property costs, grants will be capped at 50% of the lower tier (£667 per 28 days)All businesses must be able to demonstrate a significant reduction in turnover as a result of national restrictions. One grant will be paid per property per 28 days as per The Local Restrictions Support Grant (Closed).  

    This scheme will only make payments whilst Local Restrictions Grants (Closed) are in effect in Test Valley and to businesses located within Test Valley.

    Application form

Test Valley BC is aiming to identify as many eligible businesses as possible and will invite applications for the Local Restrictions Schemes. 

An online application form will be available ASAP

More details of National Restrictions