Coronavirus Local Authority Discretionary Grants Fund


CORONAVIRUS LOCAL AUTHORITY DISCRETIONARY GRANTS FUND

The Discretionary Grants Fund supports small and micro businesses that are not eligible for other grant schemes.  

Small and micro businesses with fixed property costs that are not eligible for the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund may be eligible for the Discretionary Grants Scheme.

You can get a grant of £25,000, £10,000 or any amount under £10,000.

Please note that the deadline for applications is 9.00 am on Monday 15th June 2020

You may be eligible if your business:  

-      Is based in England 

-      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 

-      Was trading on 11 March 2020 

You will need to show that your business has suffered a significant fall in income due to coronavirus.

The government has asked local councils to prioritise businesses such as:  

-   Small businesses in shared offices or other flexible workspaces, such as units in industrial parks or incubators 

-   Regular market traders 

-   Bed and breakfasts paying council tax instead of business rates 

-   Charity properties getting charitable business rates relief, which are not eligible for small business rates relief or rural rate relief

Local councils have discretion about how to prioritise this funding.  Please check with your local council for details of their scheme.  We have added some contact details below. 

You cannot apply if your business is in administration, insolvent or has received a striking-off notice.

If you’re already claiming funding 

You cannot apply if you’re already claiming under another government grant scheme such as:  

-      Small Business Grant Fund 

-      Retail, Hospitality and Leisure Grant 

-      Fisheries Response Fund 

-      Domestic Seafood Supply Chain 

-      Zoos Support Fund 

-      Dairy Hardship Fund 

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

Business that apply for the discretionary grants scheme can still apply for coronavirus-related loans if they’re eligible: 

https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19#support-for-small-and-medium-sized-businesses 

If you already get state aid

The discretionary grants fund counts towards state aid.

Payments of £10,000 or less count towards the total de minimis state aid you’re allowed to get over a three year period - €200,000.  If you have reached that threshold, you may still be eligible for funding under the Covid-19 Temporary Framework.

Payments of £25,000 count as state aid under the Covid-19 Temporary Framework.  The limit for the framework is €800,000.

Your local council will ask you to complete a declaration confirming that:  

-   You will not exceed the relevant state aid threshold 

-   You were not an ‘undertaking in difficulty’ on 31 December 2019.  This applies only to the Covid-19
Temporary Framework – see https://www.gov.uk/guidance/innovation-apply-for-a-funding-award#undertakings-in-difficulty--eu-definition
 

How to apply 

To find out how to apply, please visit your local council’s website.  We have listed various details below, but if your local council doesn't appear on this list, please check for details by visiting:  

https://www.gov.uk/find-local-council
 

Hartlepool Council - https://www.hartlepool.gov.uk

Darlington Council - www.darlington.gov.uk

Middlesbrough Council - https://www.middlesbrough.gov.uk

Redcar and Cleveland - https://www.redcar-cleveland.gov.uk 

Stockton - https://www.stockton.gov.uk

Durham County Council - www.durham.gov.uk

North Yorkshire County Council - https://www.northyorks.gov.uk/

If details of your local council do not appear above, please visit:  

https://www.gov.uk/find-local-council

What happens next 

Your local council will run an application process and decide whether to offer you a grant.

You do not have to pay the grant back, but it will be taxable.  Only businesses which make an overall profit once grant income is included will be subject to tax.

For more information visit:  

https://www.gov.uk/guidance/apply-for-the-coronavirus-local-authority-discretionary-grants-fund

Take care, stay safe.