TTR Barnes

For those businesses unable to claim via the previously launched Small Business Grants Fund (SBGF) or the Retail, Hospitality and Leisure Grants Fund (RHLGF), additional funds have been made available through a 5% top-up to the local business grant funds scheme.

The aim of the local business grant top-up is to reach those businesses that previously did not qualify for the existing business rates relief, typically those smaller businesses with under 50 employees, but with ongoing fixed, property-related costs.

The funds will again be distributed through local authorities, who will shortly receive details of the amount each will receive from the additional funding.  The authorities have been asked to prioritise those businesses operating:

• as regular market traders
• in shared spaces
• as small charity properties that would have met the criteria for Small Business Rates Relief
• as bed and breakfasts, who pay council tax rather than Business Rates

Local authorities will still have the discretion to make payments to other businesses however, based on local economic need.

Those businesses in receipt of existing coronavirus business grants will not be eligible.

Distribution of local business grant top up based on economic need

Not all qualifying businesses will meet eligibility for the grant however.  Applicants will need to show that they have seen a “significant drop” in income due to the COVID-19 epidemic.  What is not yet clear is the definition of “significant drop” – though it is expected that this detail will shortly be announced to local authorities.

The grants will be distributed at 3 levels:

• A maximum grant of £25,000
• Grants of £10,000
• Grants of under £10,000 at the discretion of local authorities

This provides another welcome boost to support for businesses during this economic crisis.  As of 27th April, a total of over £7.5b has already been paid out to 614,000 business properties through the existing business grant schemes, which represents just over 61% of the initial funding allocated.

Further details and application process are expected to be issued shortly.  If you have any questions in the meantime, please do not hesitate to contact your TTRB adviser or email the team at info@ttrbarnes.com

All information published is for general consumption and should not constitute financial advice.  All coronavirus updates are being written and distributed as timely as possible for the convenience of our audiences and will be monitored regularly for any updates and/or corrections.  Individual circumstances will vary and professional advice should always be sought on all matters before action is taken.