04 May 2020
At the weekend, the Government announced additional grant funding for small businesses that have fixed property costs.
The grants are to be administered by local authorities and are to be aimed at:
- businesses in shared spaces
- regular market traders
- small charity properties that would meet the criteria for Small Business Rates Relief
- bed and breakfasts that pay council tax rather than business rates.
However, the above list is not exhaustive and there may be other entities that qualify.
The principal beneficiaries will be those entities that don’t qualify for the current business rates relief and are small; defined as having fewer than 50 employees.
Payments will be made at local authorities’ discretion and are intended to support those businesses that do not qualify for other support based on their business rates position. Those businesses that are eligible for previously announced grant schemes cannot apply for support under this initiative.
Grants will be made based on economic need and applicants will need to show that they have suffered a significant drop in income due to the Coronavirus restrictions. Further details of the scheme are to be announced this week and it is hoped this will include an explanation of what is meant by ‘a significant drop’.
There will be three levels of grant payment, although it’s not yet clear how these will be differentiated:
- a maximum grant of £25,000
- a grant of £10,000, and
- grants up to £10,000.
As more details are forthcoming, we will provide further information.
For more information or if you have any further questions, please contact me or your usual UHY adviser.
