Grants for those not paying non domestic rates
The Government has announced an improvement to the grants that are currently available for small businesses.
The two schemes in place, Small Business Grants Fund (SBGF) and Retail, Hospitality and Leisure Grants Fund (RHLGF) have been funded to the tune of £12.33 billion but only helped those businesses that were subject to non domestic rates.
Thousands of small businesses however do not pay any rates although they do have ongoing fixed property costs, either operating from business centres or in shared properties where the landlord usually accounts for non domestic rates centrally and includes a contribution as part of the rent calculation.
The new fund of £617 million is being released to local authorities across England (although the exact allocation per local authority won’t be confirmed until next week.
Although Local Authorities have discretion they have been asked to prioritise businesses in shared spaces, regular market traders, small charities that meet the criteria for Small Business Rates Relief and Bed and Breakfasts that pay Council Tax rather than non domestic rates.To qualify businesses must:
- Have fewer than 50 employees
- Be able to demonstrate that they have seen a significant drop in income due to Coronavirus
- £25,000 (the maximum available)
- Local authority discretionary grants in any amount below £10,000
We are awaiting further details and please note that unlike the non domestic rates related grants these grants are not automatic - you will need to apply.