Top-up Government grants for small businesses

Updated: 8 June 2020

Do you run your business from somewhere other than your home and don’t pay business rates? Then this scheme could be for you.

There’s up to £617 million available from the Government as grants to small and micro businesses with fixed property costs but who aren’t eligible for the Small Business Grant Scheme or Retail, Hospitality and Leisure Grant Scheme.

• Is your business eligible?
• How much can you get?
• Is the grant taxable?
• How do you apply?

Is your business eligible?

The Local Authority Discretionary Grants Fund supports small and micro businesses with ongoing fixed property-related costs.

To be eligible, your business must:

• be based in England
  Other support is available for small businesses in Scotland, Wales and Northern Ireland
• have fewer than 50 employees
• was trading on 11 March 2020
• be able to demonstrate that you’ve had a significant decrease in income due to coronavirus restriction measures
• has “relatively high” ongoing fixed property-related costs
• occupies property (or part of a property) with a rateable value or annual mortgage/rent payments below £51,000

Your business is likely to be given priority for a grant if you’re:

• a regular market trader
• working from a shared space
  This could be in a shared office, a co-working space, a units in an industrial estate, an incubator or other flexible workspace.
• a charity with a property getting charitable business rates relief
• a bed-and-breakfast that pays council tax rather than business rates

You’re not eligible for a grant if your business:

• is in administration, insolvent or has received a striking-off notice
• is already claiming under another Government grant scheme, such as:
  • Small Business Grant Scheme
  • Retail, Hospitality and Leisure Grant Scheme
  • Fisheries Response Fund
  • Domestic Seafood Supply Scheme
  • Zoos Support Fund
  • Dairy Hardship Fund

You can still be eligible if you’ve applied for the Coronavirus Job Retention Scheme or the Self-Employed Income Support Scheme.

If you apply for this Discretionary Grant Scheme, you can still get a Bounce Back Loan or a Coronavirus Business Interruption Loan (if you’re eligible).

How much can you get?

Local councils will be able to give grants of £25,000, £10,000 or any amount under £10,000. Councils decide how to allocate their grant funding and can offer grants to other businesses outside the criteria above based on economic need.

Is the grant taxable?

Yes. Like grants through the other Government support schemes, this grant counts as taxable income.

If you already get state aid, the grant counts towards state aid.
Read more:
Gov.uk | If you already get state aid

How do you apply?

To apply for a grant from the Local Authority Discretionary Grants Fund, go to the website for your local council and follow the instructions.

Gov.uk | Find website for your local council

Read more

Here’s the Government guidance on how this scheme works and how to apply:
Gov.uk | Coronavirus Local Authority Discretionary Grants Fund

Have your say

How is the coronavirus affecting you and your small business? We’re keen to hear from you – get in touch with us on LinkedIn, Facebook or Twitter.

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