Local Authority Discretionary Grant Scheme – phase two

The Local Authority Discretionary Grant Scheme is aimed at small businesses with ongoing fixed property-related costs who were not eligible for the Small Business Grant Fund or the Retail, Leisure and Hospitality Fund (if you think you may be eligible for these grants, please visit the Business Support webpage).

We have received £1,319,500 of funding to support businesses from central government.

The first round of grants issued £415,500 to 73 eligible businesses.

The total amount still available through the grant fund is £904,000. We have changed the criteria to make more businesses eligible to apply.

The funding is capped and will be allocated on the priority order 1-7 (see ‘how will the council decide who receives a grant?’ below).

Once the full amount of funding has been allocated, no further grants will be available.

Who qualifies for the grant?

To qualify for the grant, a business must meet ALL of the criteria below:

  • Have fewer than 50 employees
  • Be trading from a business premises (or home for a bed and breakfast) in East Hampshire district on 11 March 2020
  • Be a small or micro business (see definitions below)
  • Not be in administration, insolvent or subject of a striking-off notice
  • Occupy property with rateable value below £65,000 on a sole occupancy basis or occupy part of a property (such as small businesses in shared offices or flexible workspaces), with an annual rent or annual mortgage payments below £51,000
  • Able to evidence loss of income due to the impact of coronavirus (this would be for the financial years 2018/2019, 2019/2020 and 2020/21)
  • Able to evidence total monthly fixed property overheads
  • Have a business premises which will not include their home unless this is a bed and breakfast
  • Not go over state aid limits (see State Aid limit below)
  • Only one grant per business regardless of properties within the district
  • Are not a precepting body
  • Not be in receipt of or eligible for support from any central government coronavirus-related scheme*

Such grant schemes include but are not limited to:

  • Small Business Grant Fund
  • Retail, Hospitality and Leisure Grant
  • The Fisheries Response Fund Domestic
  • Seafood Supply Scheme (DSSS)
  • The Zoos Support Fund
  • The Dairy Hardship Fund
  • Local Authority Discretionary Grant Fund – phase one

*The above does not apply to the Job Retention Scheme Fund or the Self-Employment Income Support Scheme.

How much will I receive?

Grants to be awarded under this scheme will be on a scale depending on fixed monthly overheads*. The allocation of the grant will be as follows:

Fixed monthly overheads Grant
£750 or below £2,500
£751 to £1,500 £5,000
£1,501 to £2,500 £7,500
£2,501 or above £10,000

*Fixed monthly overheads (for the purpose of this grant only) include rent, electricity, gas, water and business insurance, business rates and council tax (for bed and breakfast businesses that do not pay business rates).

Additional information can be included within the application form by businesses who wish these to be considered as fixed overheads. This consideration is at the full discretion of the evaluating panel.

How will the council decide who receives a grant?

Applications from the following businesses will be given priority over all other applications:

  • 1) Small businesses in shared offices or other flexible workspaces. Examples could include units in industrial parks, science parks and incubators which do not have their own business rates assessment.
  • 2) Regular market traders (must have a permanent structure, be registered in the district and be trading five days per week).
  • 3) Small charity properties that would meet the criteria for Small Business Rates Relief or Rural Rate Relief (who have a rateable value of £1 to £14,999 and no other property).
  • 4) Bed and breakfasts that pay council tax rather than business rates (only one grant per business).

Once the businesses in the above categories have been assessed for the grant, any other applications will be prioritised as follows:

  • 5) Public Houses that didn't qualify for the retail, leisure and hospitality grant.
  • 6) Nursery Schools and Day Nurseries, that didn't qualify for the small business grant.
  • 7) Businesses trading within the district that meet the criteria as set out above but fall outside priorities 1-6.

All applications will be reviewed on fixed property overheads and checked against evidence provided. Awards will then be given based on the priority order noted above.

When applications have closed, all valid and complete applications will be considered by the Chief Financial Officer.

A further round of applications may be offered if, following the second round of applications, the funding has not been fully used.

The completion of an application does not guarantee a payment.

The fund is limited, therefore once the fund has been used there will be no additional grants paid.

Apply online

Businesses must complete their application by midnight on Wednesday 15 July 2020.

All applicants will receive an automated response when they submit their form including a reference number to use when submitting evidence in a separate email.

Applicants will be contacted when their grant has been awarded or declined with an explanation.

Other information for applicants

Support

If you require support or advice in relation to the Local Authority Discretionary Fund please email: business@easthants.gov.uk

Small business definition

To be a small business, under the Companies Act 2006, a business must satisfy two or more of the following requirements in a year:

  • turnover: not more than £10.2million
  • balance sheet total: not more than £5.1million
  • number of employees: a headcount of staff of less than 50

Micro business definition

To be a micro business, under the Companies Act 2006, a business must satisfy two or more of the following requirements:

  • turnover: not more than £632,000
  • balance sheet total: not more than £316,000
  • number of employees: a headcount of staff of not more than 10

Tax

Grant income received by a business is taxable therefore funding paid under the Local Authority Discretionary Grants Fund will be subject to tax. Only businesses which make an overall profit once grant income is included will be subject to tax.

State Aid

The United Kingdom left the EU on 31 January 2020, nonetheless under the Withdrawal Agreement the State Aid rules continue to apply during a transition period, subject to regulation by the EU Commission.

East Hampshire District Council must be satisfied that all State Aid requirements have been fully met and complied with when making grant payments, including, where required, compliance with all relevant conditions of the EU State Aid De Minimis Regulation, the EU Commission Temporary Framework for State Aid measures to support the economy in the current coronavirus outbreak, the approved COVID-19 Temporary Framework for UK Authorities, and any relevant reporting requirements to the EU Commission.

East Hampshire District Council has a discretion to make payments to eligible recipients under either the De Minimis rules or the COVID-19 Temporary Framework for UK Authorities (provided all the relevant conditions are met).

Payments of up to and including £10,000 can be provided under the De Minimis rules, meaning applicants can receive up to €200,000 of aid within a three-year period.

Fraud

The council will not accept deliberate manipulation and fraud - and any business caught falsifying their records to gain additional grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error

All applicants’ information will be shared with the Government Grants Management team to enable any fraud to be identified. All businesses will confirm this by ticking the box on the application.

Appeals

There are no further appeals rights for the grant, the council’s decision is final.