COVID-19 – Update 1 June – Local Authority Discretionary Grants Fund

The government has published further guidance on the new Local Authority Discretionary Grants Fund and here is what we know:

Small and micro businesses are being encouraged to apply for the coronavirus Local Authority Discretionary Grants Fund. The scheme supports those businesses that are not currently eligible for other grant schemes with awards up to £25,000

If your business has fixed property costs but is not eligible for the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund then you may be eligible for the Discretionary Grants Scheme.

What you get

You can get grants of £25,000, £10,00 or anything below £10,000.

Eligibility criteria

To be eligible for this grant your business must:

• Be based in England
• Have less than 50 employees
• Have fixed building costs, i.e. rent
• Have been trading on 11 March 2020
• Have been adversely impacted by COVID-19

Local councils have discretion about how to prioritise this funding, so we advise checking with them for details of their scheme.

Other points to note

You cannot apply if your business is in administration, is insolvent, has received a striking-off notice or is already claiming under another government grant scheme, such as:

• Small Business Grant Fund
• Retail, Hospitality and Leisure Grant
• Fisheries Response Fund
• Domestic Seafood Supply Scheme
• Zoos Support Fund
• Dairy Hardship Fund

Please note you will still be eligible if you have applied for the Coronavirus Job Retention Scheme or the Self-Employed Income Support Scheme.

If you receive this grant it will count towards state aid.

• Payments of £10,000 or less count towards the total de minimis state aid you’re allowed to get over 3 years – €200,000. If you have reached that threshold, you may still be eligible for funding under the COVID-19 Temporary Framework.
• Payments of £25,000 count as state aid under the COVID-19Temporary Framework. The limit for the framework is €800,000.

How to apply

You will need to visit your local council’s website to find out how to apply. Your local council will run an application process and decide whether to offer you a grant.

You do not have to pay the grant back but it will be taxable. Only businesses which make an overall profit once grant income is included will be subject to tax.

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