Eligibility criteria for Coronavirus Business Grants

Additional Restriction Grants - Phase 2

Administration of scheme

The Council and businesses are keen to ensure that the Additional restrictions Grants are given to the maximum number of businesses, but also needs to ensure not to exceed the Government funding allocation. 

The Council is looking to support businesses that have suffered a financial loss due to the lockdown measures that have been imposed by the government from 5th November 2020 onwards. Going forwards under Phase 2 this will now include both businesses that have a rating assessment and those that do not.

The deadline for application was 10 September 2021. Applications after the final deadline date will not be considered.

Businesses that do not have a business rate assessment are required to evidence a business cost that has been maintained throughout this period.

The level of funding for businesses will be determined by rateable value or where a business has no rating assessment a fixed sum.

Funding to be provided:

How much funding will be provided to businesses?

Businesses with no Rating Assessment 

Businesses without a rating assessment who can demonstrate annual business fixed costs (excluding domestic mortgage or any part thereof) and a reduction in their income of at least 25% and that have not previously received grant funding relating to the relevant period will receive a one-off payment of £3,000.

Businesses with a Rating Assessment (below 50,999)

Businesses occupying hereditaments appearing on the local rating list with a rateable value less than 51,000 on the date of the commencement of the widespread national restrictions (5 November 2020), that have not previously received grant funding relating to this period, will receive a one-off payment of £3,000 (less than 15,000 RV) and £5,000 (RV 15,000 to 50,999). 

Businesses with a Rating Assessment (above 51,000)

  • Businesses with a rateable value between 51,000 and 75,000 will receive a one-off payment of £15,000. (Only one grant to be awarded to each company and in the event that the company qualifies in multiple categories, only the largest of the property rateable values will be considered). 
  • Businesses with a rateable value between 75,001 and 100,000 will receive a one-off payment of £25,000. (Only one grant to be awarded to each company and in the event that the company qualifies in multiple categories, only the largest of the property rateable values will be considered). 
  • Businesses with a rateable value between 100,001 and 200,000 will receive a one-off payment of £40,000. (Only one grant to be awarded to each company and in the event that the company qualifies in multiple categories, only the largest of the property rateable values will be considered). 
  • Businesses with a rateable value between 200,001 and 400,000 will receive a one-off payment of £60,000. (Only one grant to be awarded to each company and in the event that the company qualifies in multiple categories, only the largest of the property rateable values will be considered). 
  • Businesses with a rateable value greater than 400,001 will receive a one-off payment of £85,000. (Only one grant to be awarded to each company and in the event that the company qualifies in multiple categories, only the largest of the property rateable values will be considered).

Taxi Drivers

A one off payment of £1,250 will be made available to all licensed Taxi Drivers that operate within the borough.

General 

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.

If the funding is not allocated after the 28-day period, the remaining funds will be returned to the original fund for further consideration of its allocation.

Eligibility Criteria

  • Businesses must have been trading on or after the first full day of national or LCAL3 restrictions to be eligible to receive a grant support, for Southend-on-Sea this would-be 5 November 2020.
  • The Business must be able to demonstrate annual business fixed costs (excluding domestic mortgage or any part thereof) and a reduction in their income of at least 25% as a result of COVID 19 from 5 November 2020. Taxi Drivers will not be required to provide this evidence.
  • Businesses must be local and not part of a national chain or group.
  • Larger Businesses, those with a Rateable Value in excess of 51,000 which do not fall within the exclusion listing.
  • Applicants must not have received any other Covid-19 Business Grant funding relating to the period 5th November 2020 onwards e.g. Cultural Recovery Fund, Local Restrictions Grant, Additional Restrictions Grant, or COVID discretionary grant etc. 
  • Subject to Subsidy Allowance 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.
  • At the discretion of the Executive Director (Finance & Resources), the appropriate level of grant to be paid to cover any appeals that have not been finalized and would have resulted in payment prior to the end of government grant schemes deadlines, where the business is later deemed to have qualified.
  • At the discretion of the Executive Director (Finance & Resources) to resolve any disputes over eligibility.  

Excluded businesses

The following businesses will not be eligible for an award:

(a)    Businesses/ and or individuals in debt to the Council are not eligible for this grant unless they are in active prepayment plans and/or in negotiations over debt repayment
(b)    Businesses not trading in or from Southend in 2020
(c)    Businesses which have already received grant payments that equal the maximum levels of State Aid permitted under the Business Grant Subsidy Allowance.
(d)    Business that were in administration, are insolvent or where a striking-off notice has been made at the date of the local restriction or widespread national restriction
(e)    For the purpose of properties with a rateable value in excess of 51,000, the following business categories will not be considered; Car Showrooms, Solicitors, Accountants, Property Management, Service Stations, Golf Courses, Theatres, Museums, Leisure Centres, Public Houses, Hotels, Restaurants, Amusement Arcades and Retail

Will this grant scheme be subject to tax?

Grant income received by a business is taxable. The Additional Restrictions 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.
 

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