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Coronavirus/COVID-19: 17 November Update – Funding for Businesses Affected by Latest Restrictions

As the news is announced in relation to the increased restrictions in certain areas of Scotland, information confirming that applications are now open for funding available to businesses affected by today’s statement as well as earlier restrictions will be welcome by many. Similar funding was announced by the UK Government last week and we have also highlighted details of this support.

If you require further clarification or even a little extra reassurance that you understand and are interpreting this information, or any other COVID related support correctly, please do not hesitate to contact us.

Strategic Framework Business Fund (Scotland only)
Funding is available for eligible businesses across Scotland that have been impacted by the Scottish Government’s protection levels. Applications to the Strategic Framework Business Fund should be made through your local authority website.

You can find links to all Scottish local authority websites here.

There are two types of grant and these will be available from 2 November 2020 until 31 March 2021. These are:

  • the Business Temporary Closure Grant: if your business is required to close by law the grant provides £2,000 for premises which have a rateable value of up to and including £51,000 or £3,000 for premises which have a rateable value of £51,001 or above
  • the Business Restrictions Grant: if your businesses is required by law to modify their operations due to COVID-19 restrictions the grant provides £1,400 for premises which have a rateable value of up to and including £51,000 or £2,100 for premises which have a rateable value of £51,001 or above.

Grants will be paid every four weeks in arrears as long as restrictions last. If restrictions are extended beyond four weeks you will not need to re-apply.

For businesses that operate multiple premises, the Business Temporary Closure Grant has an upper limit of £15,000 in any four-week period and the Business Restrictions Grant has an upper limit of £10,500 in any four-week period. All premises should be included in one application and this should be processed by the local authority area in which your business is headquartered.

The key criteria for eligibility are:

  • your business was trading on 2 November 2020
  • you have a dedicated business bank account
  • your business premises are registered for Business Rates (if you pay rates through your landlord rather than directly to the Council, you are still eligible to apply).

Eligibility will also depend on the level of restrictions which are in place at any point in time in the location of the business premises. Full details of eligibility will be found on your local authority’s website.

The Scottish Government is planning to publish details of support for mobile close contact services separately eg. nail bars, beauty salons. This will be available via the FindBusinessSupport.gov.scot website.

When restrictions end or reduce, we understand that any transitional or final payment in arrears will be adjusted to reflect the duration of the restrictions to the nearest week, where possible.

Local Restrictions Support Grants (England only)
The Local Restrictions Support Grant (LRSG) is there to support businesses in England that

  • have been required to close due to temporary local restrictions as a result of COVID-19 (LRSG Closed)
  • have not had to close but have been severely impacted due to temporary local restrictions as a result of COVID-19 (LRSG Open)
  • have been required to close due to the national COVID-19 restrictions between 5 November and 2 December 2020 (LRSG Closed Addendum).

Further details on each of the grants can be found below.  All grants are calculated on the rateable value of a business premises. Local authorities will be responsible for distributing the grants, the most recent links we have for our local clients are:

If you have premises in another region, you can find the link to your local council website here.

If you are a business that does not directly pay business rates or have not had to close but are still impacted by restrictions, you may be able to apply for a Additional Restrictions Grant (ARG) Again local councils are responsible for distributing these grants and will determine which businesses to target and the amount of funding to be made available from the ARG.

LRSG (Closed Addendum) – Businesses that were open as usual, but were required to close between 5 November and 2 December 2020 due to the national restrictions imposed by government may be entitled to a cash grant from their local council for each 28 day period under national restrictions.

Support is based on the rateable value of business premises and is available for each 28 day period a business is placed under local restrictions.

  • for properties with a rateable value of exactly £51,000 and over, grants of £3,000 for each 28 day period of restrictions
  • for properties with a rateable value of over £15,000 and below 51,000, grants of £2,000 for each 28 day period of restrictions
  • for properties with a rateable value of £15,000 or under, grants of £1,334 for each 28 day period of restrictions.

LRSG (Closed) – Businesses will be eligible for the grants after two weeks of closure and for each 14 day period they are closed.

  • businesses occupying premises with a rateable value of £51,000 or over will be eligible for a grant of £1,500 per two weeks of closure
  • businesses occupying premises with a rateable value of over £15,000 and less than £51,000 will be eligible for a grant of £1,000 per two weeks of closure
  • businesses occupying premises with a rateable value of £15,000 or under will be eligible for a grant of £667 per two weeks of closure

Payments are triggered by a national decision to close businesses in high-risk areas. Eligible businesses can get one grant for each non-domestic property within the restricted area.

LRSG (Open) – On 22 October the scheme was extend to include businesses impacted by local COVID alert levels, High or Very High, even if those businesses are not legally forced to close. Although this is aimed at primarily businesses in the hospitality, accommodation and leisure sector, local councils have the freedom to determine the precise eligibility criteria for these grants.  The funding will be available retrospectively for areas who have already been subject to restrictions.

Support is based on the rateable value of business premises and is available for each 28 day period a business is placed under local restrictions.

  • for properties with a rateable value of exactly £51,000 and over, grants of £2,100 for each 28 day period
  • for properties with a rateable value of over £15,000 and below 51,000, grants of £1,400 for each 28 day period
  • for properties with a rateable value of £15,000 or under, grants of £934 for each 28 day period.

Other businesses affected by closures which may not be on the business rates list, may also be eligible for support. Local authorities will make payments up to £1,500 but they could also be less than £1,000 in some cases.

As with other COVID-19 business grants, local grants to closed businesses will be treated as taxable income.

If you need any assistance in relation to other financial issues or what steps your business should be taking to ensure it emerges from the crisis in the best possible shape, please call or email us.  We are here to help and the partners and the GWA team can be found at their usual email addresses and phone numbers.

Information correct as of 17 November 2020

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