New discretionary grants to help small businesses and charities

A discretionary fund is available to help small businesses and charities that are not covered by the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF),

The fund is aimed at small businesses with ongoing fixed property-related costs.

Local authorities are tasked with using the fund to help businesses in shared spaces, regular market traders, small charity properties that would meet the criteria for Small Business Rates Relief, and bed and breakfasts that pay council tax rather than business rates.

Councils have the discretion to make payments to other businesses based on local economic need.

Businesses must be small, have under 50 employees, and they must also be able to demonstrate that they have seen a significant drop of income due to Coronavirus restriction measures.

There are three levels of grant payments. The maximum will be £25,000. There will also be grants of £10,000. local authorities will have discretion to make payments of any amount under £10,000. It will be for councils to adapt this approach to local circumstances.

Businesses who believe they may be eligible for the fund should contact their local authority as applications are now being accepted.

Have you received your Small Business Grant or Retail, Hospitality and Leisure Grant?

When these grants were first announced it was made clear that local authorities would contact eligible firms in their area. But this does not appear to be the case in all instances. If you have not been contacted by your local authority, you should contact them as soon as possible to check on your entitlement.

Apply for the coronavirus Local Authority Discretionary Grants Fund

For further information on SBGF and the RHLGF, please read our separate article.

(Ministerial direction letters authorising a Discretionary Grants Fund to help protect small businesses from the impact of COVID-19)