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New Business Grant Guidance For Businesses Forced to Close During Lockdown 2.

The Secretary of State for BEIS, Alok Sharma, gave a press briefing on COVID-19 on Thursday, along with Prof Steve Powis of NHS England, in which he confirmed that the Government will be distributing £2.2 billion to local authorities in England today, to allow them to make grant payments to businesses which have been affected.

Meanwhile, BEIS has published guidance on five grant schemes. Local Restrictions Support Grant (LRSG (Closed) Addendum)The Local Restrictions Support Grant (LRSG (Closed) Addendum) supports businesses in England that were open as usual but have been required to close due to the national restrictions between 5 November and 2 December 2020.

Eligible businesses may be entitled to a cash grant from their local council for each 28-day period under national restrictions.EligibilityYour business may be eligible if it: 

  • Is based in England
  • Occupies property on which it pays business rates (and is the ratepayer)
  • Has been required to close because of the national restrictions from 5 November to 2 December 2020
  • Has been unable to provide its usual in-person customer service from its premises

Additional Restrictions Grant (ARG)

To support businesses that are not covered by other grant schemes or where additional funding is needed, this scheme provides local councils with grant funding to support closed businesses that do not directly pay business rates as well as businesses that do not have to close but which are impacted. In addition, larger grants can be given than those made through 

Local Restrictions Support Grant (Closed)

.EligibilityLocal councils have the freedom to determine the eligibility criteria for these grants. However, the funding is expected to help those businesses which – while not legally forced to close – are nonetheless severely impacted by the restrictions. This could include: 

  • Businesses which supply the retail, hospitality, and leisure sectors
  • Businesses in the events sector
  • Business required to close but which do not pay business rates

The Local Restrictions Support Grant (LSRG (Sector))Businesses including nightclubs, dance halls, discotheques adult entertainment venues and hostess bars that have been required to close due to the national restrictions introduced in March 2020, and which have not been able to re-open, may be eligible for this grant. Eligible businesses are entitled to a cash grant from their local council for each 14-day period they are closed. This funding is available from 1 November 2020 and is not retrospective. The grant will be based on the rateable value of business owners properties on 1 November 2020.Eligibility.

Your business may be eligible if it: 

  • Is based in England
  • Occupies property on which it pays business rates (and is the ratepayer)
  • Has been closed since 23 March 2020 because of national restrictions

Eligible businesses can get one grant per non-domestic property. 

 

Local Restrictions Support Grant (for closed businesses)

Businesses in England that were open as usual and were then required to close due to local restrictions (Local COVID alert level: Very High) may be eligible for the local restrictions support grant. Eligible businesses are entitled to a cash grant from their local council for each 14-day period they are closed. 

Eligibility

Your business may be eligible if it: 

  • Is based in England
  • Occupies property on which it pays business rates (and is the ratepayer)
  • Is in an area of local restrictions and has been required to close because of local restrictions that resulted in a first full day of closure on or after 9 September
  • Has been required to close for at least 14 days because of the restrictions
  • Has been unable to provide its usual in-person customer service from its premises

Local Restrictions Support Grant (for open businesses)The 

Local Restrictions Support Grant (LRSG (Open) supports businesses that have been severely impacted due to temporary local restrictions. Businesses that have not had to close but which have been severely impacted due to local restrictions (Local COVID alert levels: High or Very High) may be eligible for LRSG (Open). Eligible businesses may be entitled to a cash grant from their local council for each 28-day period under local restrictions.

Eligibility

Your business may be eligible if it: 

  • Is based in England
  • Is in an area subject to ‘High’ or ‘Very High’ local restrictions since 1 August 2020 and has been severely impacted because of the local restrictions was established before the introduction of Local COVID alert level: High restrictions
  • Has not had to close but has been impacted by local restrictions

Local councils have the freedom to determine the precise eligibility criteria for these grants. However, the funding is expected to be targeted at hospitality, hotel, bed & breakfast and leisure businesses.