09-04-2020
FAQs on Grant Funding and further business guidance
Wyre Council has set up a dedicated webpage to support local businesses during the coronavirus pandemic. CLICK HERE to view.
To speed up the process Wyre Council is encouraging applicants to use the online form but if you require a hard copy please email businesshelp@wyre.gov.uk and one will be posted out to you.
To help keep you up to date with the business help and advice available, other useful government website links are as follows:
Guidance to employers and businesses
GRANT FUNDING SCHEMES – FAQs
Small Business Grant Fund and
Retail Hospitality & Leisure Grant Fund
Two business grant schemes, the Small Business Grants Fund and the Retail, Hospitality and Leisure Grants Fund, were announced by the Chancellor on 11 March and 17 March 2020. Guidance on the two funding schemes has been published and updated on GOV.UK and businesssupport.gov.uk
Please find below Frequently Asked Questions regarding the criteria and management of the funding schemes.
General
- What is the purpose of this funding?
This funding is being made available to help small, rural, retail, leisure and hospitality businesses with their ongoing business costs in recognition of the disruption caused by COVID-19.How much funding will be provided?
Small Business Grant Fund:
Under the Small Business Grant Fund (SBGF) all businesses in England in receipt of Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR) as of the 11 March will be eligible for a payment of £10,000. We estimate that this will apply to some 730,000 businesses across England.
Retail, Hospitality and Leisure Grant Fund:
Under the Retail, Hospitality and Leisure Grant (RHLG) businesses in England that would have been in receipt of the Expanded Retail Discount (which covers retail, hospitality and leisure) on 11 March, with a rateable value of less than £51,000, will be eligible for cash grants of up to £25,000 per property.
Eligible businesses in these sectors with a property that has a rateable value of up to and including £15,000 will receive a grant of £10,000. Eligible businesses in these sectors with a property that has a rateable value of £15,000.01 or over and less than £51,000 will receive a grant of £25,000. Businesses with a rateable value of £51,000 or over are not eligible for this scheme. Businesses which are not ratepayers in the business rates system are not included in this scheme.
- Is this scheme UK wide?
Local business support policy is devolved. The Barnett Consequentials formula is being applied to additional support for businesses in England. The devolved administrations will receive over £2.3bn additional funding as a result of this English grant scheme, enabling them to provide support to businesses in Scotland, Wales, and Northern Ireland.
- Will some areas of the country benefit more than others?
The scheme criteria will apply equally to all areas of England.
- Why are you giving money to all eligible businesses, isn’t it more appropriate to target funding to those affected by COVID-19?
The government acknowledges that the majority of small, rural, retail, leisure and hospitality ratepayers are likely to be affected by COVID-19.
- Why support those in receipt of SBRR – what about other small business e.g. those who do not occupy a property?
This funding is to support small and rural businesses who are ratepayers on a property. These businesses are more likely to have on-going fixed costs.
- What are the principles behind the Government’s economic response plan?
We have set out three principles that are guiding our development of economic policy in response to COVID-19.
- First, our response must be comprehensive. We will act in a manner commensurate with the scale of the challenge we face. It is now clear this situation will require a response beyond the bounds of normal government intervention. We will do whatever it takes.
- Second, our response must be coordinated. We in Government are working hand in glove with the wider economic authorities. Domestically, that includes the Bank of England, the regulators, and the health response. And internationally, we will continue to speak with G7 and G20 counterparts.
- Third, our response must be coherent. It would be easy, at a time like this, to rush into a response that we later found out had been ill-considered.
- Are there any conditions attached to this grant funding?
Any business who accepts this funding must confirm they comply with all the applicable State aid requirements. Businesses who accept this funding must also provide information requested by the Local Authority to support monitoring and assurance.
- Is this funding taxable?
The default position is that these grants would be liable for tax, as are the business costs this grant is supporting.
Eligibility – General
- Which businesses are eligible?
Businesses that were in receipt of Small Business Rate Relief or Rural Rate as of 11 March will be eligible for the Small Business Grants Fund.
For the Retail, Leisure and Hospitality Grants Fund, businesses that would have been in receipt of the Expanded Retail Discount Scheme with properties that have a rateable value of under £51,000 are eligible.
- Can businesses with multiple properties claim multiple grants? (e.g. Can a hairdresser with three shops, each with less than a £15k rateable value, claim three £10k grants?)
Businesses can only get one grant under the Small Business Grant Scheme.
Businesses eligible for the Retail, Hospitality and Leisure scheme can claim one grant per eligible property.
- Will businesses be able to claim support from both the grant scheme for retail, hospitality, and leisure sectors and the Small Business Grants fund?
No. If a business receives a Small Business Grant, they will not be eligible for a Retail, Hospitality and Leisure Grant on the same property.
- It is not clear for Retail, Hospitality and Leisure businesses that receive Small Business Retail Relief whether they fall into the ‘Small Business Grants’ category or the ‘Retail, Hospitality and Leisure Grant Scheme’.
Any properties falling within both the Small Business Rate Relief and Expanded Retail eligibility should be awarded one 10k grant. Businesses cannot be awarded both grants on the same property.
- Can businesses who are eligible but don’t want or need funding opt out?
A business may decline the grant.
- How should Local Authorities deal with businesses who, now a grant is possible, are advising them that they have been in occupation of a property for some time?
Any changes to the rating list after 11 March 2020, including changes which have been backdated to this date, should be ignored for the purposes of eligibility. Local Authorities are not required to adjust, pay or recover grants where the ratings list is subsequently amended retrospectively to 11 March 2020.
