Discretionary Top Up Fund - Small/Micro Businesses

The guidance for the “top-up” fund for local authority’s grants has now been published. Here is what you need to know.

 

Who is eligible?

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. These definitions are the following:

Small business

A business must satisfy two or more of the following in a year:

Turnover of not more than £10.2million

Balance sheet total: Not more than £5.1 million

Number of employees: Less than 50

Micro business

A business must satisfy two or more of the following in a year:

Turnover of not more than £632,000

Balance sheet total: Not more than £316,000

Number of employees: Less than 10

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 funding from the Discretionary Grants Fund.

 Such grant schemes include but are not limited to:

• Self Employment Income Support Scheme

• Small Business Grant Fund

• Retail, Hospitality and Leisure Grant

Businesses that have claimed support through the Coronavirus Job Retention Scheme are eligible.

Only businesses which were trading on 11 March 2020 are eligible for this scheme. 

 

How much funding will be provided?

Grants of £25,000, £10,000 and under £10,000 will be made payable to businesses at the local authorities discretion.

Who will be prioritised?

The guidance asks local authorities to prioritise the following for the grants:

• 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; and

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

How do I apply?

Guidance should be presented on your local authority website shortly.

The amount available is limited, therefore the guidance suggests it is likely an application process will take place. This is also to mitigate the risk of fraud.

As more detail emerges we will continue to keep you updated.

 

Andrew Douthwaite -  Manager -  Hamlyns LLP  andrew.douthwaite@hamlyns.com

 

 

 

 

 

 

 

 

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