Due to the coronavirus pandemic and its financial implications on small businesses, the government has set up a variety of grants in order to help businesses weather the storm of local or national lockdowns. You may also be able to apply for emergency loan funding that has been set up by the government. To read more about “Bounce Back Loans” which need to be repaid eventually, you can read more here.
There are several grants and your business’ eligibility will be determined by several factors, including whether they are closed due to a national or local lockdown, whether the company is required to close completely, or doesn’t close but is still financially affected and whether your company pays business rates.
There are four main grants:
*ARG provides smaller grants than LRSG (Open)
If your business must close because of the nationwide lockdown spanning from November 5th to December 2nd, you may be eligible for the Local Restrictions Support Grant: LRSG (closed) Addendum.
If your business qualifies, you may be entitled to a cash grant from your local council for each 28-day period of the lockdown.
In order to qualify for this grant, your business must:
This includes non-essential retailers, sports/leisure facilities, and restaurants which have gone from in-person service to exclusively take-away service.
You are NOT eligible if
The value of the grant is dependent on the rateable value of the business property on the first day of the lockdown:
You apply for the grant through your local council. More information about the process and eligibility requirements, including the state aid limits, can be read here.
If your business must close because the COVID alert level is raised to “high” in the area where your business operates, you may be eligible for the Local Restrictions Support Grant: LRSG (Closed).
If your business qualifies, you are entitled to a cash grant from your local council for each 14-day-period of the lockdown.
In order to qualify for this grant, your business must:
This includes non-essential retailers, sports/leisure facilities, and restaurants which have gone from in-person service to exclusively take-away service.
You are not eligible if
The value of the grant is dependent on the rateable value of the business property on the first day of the lockdown:
You can get multiple payments if the restrictions continue for additional 14-day periods. Each 14-day period will give you access to one grant payment, which you apply for through your local council.
More information about the application process and eligibility requirements, including the state aid limits, can be read here.
If your business remains open but has been severely impacted because the COVID alert level is raised to “high” in the area where your business operates, you may be eligible for the Local Restrictions Support Grant LRSG (Open).
If your business qualifies, you are entitled to a cash grant from your local council for each 28-day-period of the restrictions.
In order to qualify for this grant, your business must:
Your local council has the freedom to specify precise criteria for what constitutes eligibility for this grant, but it’s aimed at businesses in the hospitality sector.
You are NOT eligible if
The value of the grant is dependent on the rateable value of the business property on the first day of the lockdown:
You apply for the grants through your local council. More information about the application process and eligibility requirements, including the state aid limits, can be read here.
If your business has been forced to close by COVID restrictions but you are inelligible for other grants such as LRSG (Closed) or LRSG (Closed) Addendum because your business does not pay business rates, you may be eligible for Additional Restrictions Grants (ARG)
Additionally, if your business hasn’t been required to close by restrictions, but has been financially impacted by restrictions, you may also be eligible for ARG compensation.
The eligibility requirements are set at the discretion of local councils, but these grants are aimed at businesses which do not pay business rates, or have been impacted because they supply retail, hospitality or leisure sectors, or are part of the events sector.
You are ineligible for this grant if your business is in administration, insolvency or has been struck off the Companies House register, or you have exceeded state aid limits.
If your business is open but still severely impacted by COVID restrictions, you may be able to apply for larger grants than ARG can offer through the LRSG (Closed) compensation scheme. You apply for ARG through your local council and more information about requirements, including state aid limits, and the application process for Additional Resource Grants here.
