Eligibility criteria for Coronavirus Business Grants

Local Restrictions Support Grant (LRSG) and ARG schemes which are now closed

In this section

  1. Local Restrictions Support Grants (LRSG) from 5 January 2021 onwards – This scheme is now closed for the period 5 January 2021 to 15th February 2021 however applications can still be made for the period 16th February 2021 to 31 March 2021.

These schemes closed to new applications on 31 March 2021

  • Local Restrictions Support Grants (LRSG) from 5 November 2020 to 2 December 2020 – Scheme Closed 31st March 2021
  • Local Restrictions Support Grant (for closed businesses) from 2 December 2020 onwards – Scheme Closed 31st March 2021
  • Local Restrictions Support Grants (LRSG) for sectors forced to close from 2 December onwards – Scheme Closed 31st March 2021
  • Local Restrictions Support Grant (for open businesses) – 02 December 2020 – onwards – Scheme Closed 31st March 2021
  • Additional Restriction Grants for businesses that are still open from 02 December 2020 - onwards – Scheme Closed 31st March 2021
  • Christmas Support Payment for wet-led pubs (CSP) – 02 December 2020 – onwards – Scheme Closed 28th February March 2021
     

Local Restrictions Support Grant (for closed businesses) Addendum – 5 November 2020 to 2 December 2020 - Scheme now closed

The national restrictions from 5 November to 2 December 2020 required businesses to close in order to manage the spread of coronavirus and save lives. Businesses in other sectors that aren’t required to close will also have been affected by the restrictions.

Local Restrictions Support Grant (for closed businesses) Addendum – 5 November 2020 to 2 December 2020 – Scheme now Closed

How much funding was provided to businesses?

  • Businesses occupying hereditaments appearing on the local rating list 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 hereditaments appearing on the local rating list with a rateable value over £15,000 (£15,001) and less than £51,000 (£50,999) 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 hereditaments appearing on the local rating list 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.

This funding will be provided on a rolling 28-day basis for as long as national restrictions apply.

Any changes to the rating list (rateable value or to the hereditament) after the first full day of localised restrictions and business closures regulations came into force including changes which have been backdated to this date, should be ignored for the purposes of eligibility.

Eligibility

Businesses that were mandated to close by government between 5/11/2020 and 2/12/2020 included non-essential retail, leisure, personal care, sports facilities and hospitality businesses.

Any business that is required to close the part of its business that provides its main service is eligible for a Closed Grant. This is the case even if the business adapts its business model to provide a reduced service, such as takeaways. The council will use their discretion and local knowledge to make a judgement regarding which element of the business is the substantive element of the business.

Subject to State Aid limits, businesses will be entitled to receive a grant for each eligible hereditament within the restriction area. So, some businesses may receive more than one grant where they have more than one eligible hereditament.

Businesses must have been closed for the period 5 November 2020 to 2 December 2020 to be eligible.

Who received this funding?

The person who according to the billing authority’s records was the ratepayer in respect of the hereditament on the date of the first full day of local restrictions is eligible for the grant.

Businesses needed to notify their Local Authority if they no longer met the eligibility criteria for additional grants at any point in any local restrictions period. For example, if they become insolvent.

Will this grant schemes be subject to 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.

Exclusions

  • Businesses that are able to continue to trade because they do not depend on providing direct in-person services from premises and can operate their services effectively remotely (e.g. accountants, solicitors). 
  • Businesses subject to local restrictions that are implemented for less than 14 days and businesses that are closed for less than 14 days are not eligible for grant funding. 
  • Businesses in areas outside the scope of the localised restrictions, as defined by Government, are also excluded.
  • Businesses that have chosen to close but not been required to will not be eligible for this grant.
  • Businesses which have already received grant payments that equal the maximum levels of State aid permitted under the de minimis and the Covid-19 Temporary State Aid Framework.
  • For the avoidance of doubt, businesses that were in administration, are insolvent or where a striking-off notice has been made are not eligible for funding under this scheme. 

Administration of this Grant

Additional Restriction Grant – 5 November 2020 to 2 December 2020

On 31 October 2020, the Government announced the introduction of additional support for Local Authorities under national and Local Covid Alert Level 3 restrictions. This support will take the form of a funding scheme in Financial Year 2020- 2021 and can be used across Financial Years 20/21 and 21/22.

Under the Additional Restrictions Grant, Local Authorities received a one-off lump sum payment amounting to £20 per head in each eligible Local Authority when LCAL 3 or widespread national restrictions are imposed. Local authorities can use this funding for business support activities which the council did in the form of discretionary grants. 

Back to the Full Business Support Grant Guidance page

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