As Liverpool enter what is now known as a ‘Tier 3’ Lockdown, it got me wondering what support is available for businesses in Andover – should the worst happen.
There is a CoronaVirus Local Restrictions Support Grant or LRSG Grant for short, that is currently available. I’ll outline the eligability below to see if you are one of the businesses that could take advantage of this grant, in case we have similar local lockdown as Liverpool…
The grant is available to those businesses which have been forced to close temporarily – due to Covid- 19. It is for the businesses that have business premises with a rateable value under £51k and for those that (essentially) provide services face to face with their customers, from their business premises. The business must be closed for a minimum of 3 weeks before they are eligble to claim and they must be closed due to local lockdown restrictions, imposed by government (opposed to by choice).
It is for businesses that pay business rates although local councils are allowed to use their discretion and could help businesses that do not pay rates.
In the interest of ensuring completely accurate information, I have used the information below by taking it directly from https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-local-restrictions-support-grant
Your business may be eligible if it:
- occupies property on which it pays business rates
- is in a local lockdown area and has been required to close because of the formal publication of local restrictions guidance that resulted in a first full day of closure on or after 9 September. This funding is not retrospective
- has been required to close for at least 3 weeks because of the lockdown
- 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.
Eligible businesses will get one grant for each property liable for business rates within the lockdown zone.
Businesses that are required to close but do not pay business rates may be eligible for funding at the discretion of the local council, as may businesses not required to close but which are severely impacted.
What you will get
If your business is eligible and has a property with a rateable value of less than £51,000, you will receive a cash grant of £1,000 for each 3-week period your business is closed.
If your business is eligible and has a property with a rateable value of £51,000 or above, you will receive a cash grant of £1,500 for each 3-week period your business is closed.
The grant will be extended to cover each additional 3-week period, so if your business is closed for 6 weeks it will receive £2,000 or £3,000, depending on the rateable value of the property.
Grants will be based on the rateable value of the property on the first full day of local lockdown restrictions.
You may receive a grant of up to £1,500 at the discretion of your local council if:
- your business is required to close but you do not pay business rates
- if your business is not required to close, but has been severely affected, for example as a result of customer businesses being closed
Your local council will publish details of discretionary funding on their website.
- 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
- businesses that have reached the state aid limit
If you already get state aid
The Local Restrictions Support Grant counts towards state aid.
Payments count towards the total de minimis State aid you’re allowed to get over a 3-year period – €200,000. If you have reached that threshold, you may still be eligible for funding under the COVID-19 Temporary Framework. The limit for the framework is €800,000.
Your local council will ask you to complete a declaration confirming that:
- you will not exceed the relevant State aid threshold
- you were not an ‘undertaking in difficulty’ on 31 December 2019. This applies only to the COVID-19 Temporary Framework
The undertaking in difficulty test does not apply to small and micro undertakings (less than 50 employees and less than EUR 10 million of annual turnover and/or annual balance sheet) unless they were already in insolvency proceedings, have received rescue aid that has not been repaid, or are subject to a restructuring plan under State aid rules.
How to apply
Visit your local council’s website to find out how to apply:
It’s The Money Guy’s Thoughts On This…
The grant’s highlighted are good, but they are not great. The governent is providing some sort of financial support, but what about all the businesses that provide business to business support, for the businesses that have face to face transactions with their customers? What do they get? Handing out discretionary grants are also, potentially, very dangerous, who’s governing this? How doe’s one decide if a business is ‘Up’ for the grant? How much of the money supplied to the local council will be used for the support of businesses? What happens if a business is not allowed the discretionary grant? Livelihoods are being lost, jobs are being lost and subsequently homes are being lost too, adding to the financial stress of an ever suffocating economy.
If you own a business and need help, support or just a chat , please feel free to email me Adam@loveandover.com