Support grants available for closed businesses.
It’s a tough time to be in business right now, regardless of the sector, but if you operate within an industry which has been ordered to close due to local or national restrictions there is some form of financial help available.
Following the announcement last night, there are currently 5 available grants with respect to business interruption because of lockdown.
- The Local Restrictions Support Grant (LRSG) – Open
- The Local Restrictions Support Grant (LRSG) – Closed
- The Local Restrictions Addendum (LRSG) – National Lockdown
- The Local Restrictions Support Grant (LRSG) – Sector
- Additional Restrictions Grant (ARG)
Local Restriction Grants (1-4 above)
In a nutshell, these are grants available for businesses who pay business rates.
LRSG Open (Tier 2) – aimed at hospitality, hotels, bed and breakfast, and leisure businesses who were open during Tier 2 restrictions but whose trade suffered as a result.
LRSG Closed (Tier 3) – aimed at businesses such as wet pubs, soft play centres, adult gaming centres etc. who were subject to government mandated closure during Tier 3 restrictions.
LRSG Addendum (National Lockdown) – aimed at retail, hospitality and leisure sectors forced to close due to the national lockdown enforced from 5th November 2020.
LRSG Sector – aimed at nightclubs, casinos and sexual entertainment venues who have been under mandated closure since March 2020.
To be eligible for the four LRSG schemes listed above, the business must have been liable for business rates at the point the relevant restriction was put into place and must not be in administration, liquidation or dissolved.
How much will you get?
The amount you receive is based on the rateable value of the business premises, which is determined by the Valuation Office Agency.
Where restriction periods are less than 28 days, the amount you will receive will be worked out based on the days you were under those restrictions.
Additional Restrictions Grant (ARG)
This scheme is aimed at businesses that occupy business premises, (with fixed premises costs) and have been required to close due to national lockdown restrictions, but do not have a business rates account.
Please note – If your business does not pay rates and has remained open, yet seen a severe impact in trade, some councils are offering a discretionary grant but this depends on funds available.
To be eligible the business must have been trading on or before 4 November 2020 and have 50 or less employees (larger businesses can apply but it is the discretion of your local council).
The business must have ongoing costs of £1,000 per year, not including employee costs and be able to demonstrate a minimal income for £10,000 per year.
Can you be eligible for more than one grant?
Yes, but not at the same time. For example if you were impacted by tier 3 restrictions from 31st October, you can claim the LRGS (Closed) from 31/10 – 04/11. From 5th November the LRGS (National Lockdown) then supersedes the other grants previously available.
You can only be eligible for either the LRGS or ARG, not both.
In order to simplify the process for applicants most councils will be using one application form which will include questions relevant to all four grants. This information will then be used to determine what grant(s) businesses are eligible to receive.
This means that by putting in the dates from when you were effected, the council will calculate which grants you were eligible for during which period and pay accordingly. The first announcement was made on 9th September so claims can be backdated to then but it is at the councils discretion, due to funds available, what they award businesses.
How to apply?
You will need to apply through your local council’s website. We have put a link below to a few of our local councils but this is available nationally.
The links below will take you directly to the landing page of the grants available, each one has its own eligibility criteria and certain exclusions do apply.
As always, we are here to help you in any way possible, if you have questions please call us on 01482 888820 on or email us at email@example.com