Small businesses across the South West can apply for a new Government Discretionary Grant of up to £25,000 to help them cope with economic damage caused by the coronavirus lockdown - but funds are very limited.
The scheme, administered by district councils and unitary authorities, will help small businesses with fewer than 50 employees that have not been eligible for other grant funding, - with the exception of the Job Retention Scheme and the Self Employment Income Support Scheme - and which were trading on March 11.
Grants will range from £1,000 to £25,000 with all businesses required to meet the same evidence based criteria.
Due to the limited funds available it is anticipated that only a very small number of grants will be above £10,000.
Businesses eligible for support, outlined in the Government guidance include those which:
have ongoing fixed building related costs
can show that they have suffered a significant drop in income due to Covid-19
have fewer than 50 employees and a turnover of under £10.2million
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were trading on or before March 11, 2020.
The following business types will be prioritised for funding as outlined by the Governments criteria:
B&Bs that pay council tax rather than business rates. But this excludes properties listed only on Airbnb).
Regular market traders that do not have business rated premises, including market stallholders, street traders and mobile businesses. Only traders with a formal site agreement with a council or landowner will be eligible. Businesses that trade across multiple local authority areas will only be able to claim a grant from one area.
Small businesses in shared offices or flexible work spaces who pay an all-inclusive rent and therefore don’t have their own business rates ratings assessment.
Charity properties in receipt of charitable business rates relief which would otherwise have been eligible for Small Business Rates Relief or Rural Rate Relief.
Each council also has the discretion to extend the grants to business sectors in their area which they feel need additional support in the interim, for instance tourism sectors within Devon. Business owners should check council websites for information on the business types prioritised in their area.
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The Plymouth scheme will also support boat-based businesses including fishing boats and tourism-based charter boats that are not eligible for the Fisheries Fund. This does not include marinas and is intended for businesses where the fixed costs accrue to the boat.
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Businesses that were not trading on March 11, that are currently in administration or insolvent, or who have accessed other Government funding schemes will not be eligible.
Also not eligible for funding under this scheme include small businesses with a turnover of more than £10.2million, balance sheet of more than £5.1million and more than 50 staff.
Micro businesses with a turnover of more than £632,000, a balance sheet of more than £316,000, and with more than 10 staff, are also not eligible.
And neither are businesses whose property rent, mortgage payments and rateable value is above the threshold of £51,000.
Online applications opened on June 1. Businesses will be asked for information about their number of employees, costs and loss of income as part of the grant application process.
Plymouth City Council said it aims to make payment in three tranches with the first payments made on June 16.
Tudor Evans, leader of Plymouth City Council, said: “We have lobbied hard for additional funding for the many businesses that have fallen through the cracks of Government support, but who desperately need financial help to survive.
“We’ve worked hard with councils across Devon to ensure the funding is distributed fairly to businesses that need it the most.
“Plymouth has only been allocated £2.27million for this scheme, which is tiny when you consider we have so far paid out over £42million to over 3,500 businesses through the Small Business Grants Fund and Retail, Hospitality and Leisure Grant Fund.
“As a result we have decided to prioritise strictly around the Government criteria in the first instance. We have also included boat-based businesses within our scheme, recognising their importance to the Plymouth economy. We will review this regularly based on demand and the availability of additional funding.
“I must stress that we know that demand will far outstrip the available funds, so we will keep the pressure on and continue lobbying for more support for our businesses in the city.”
Judy Pearce, leader of South Hams District Council, said: “It’s really important we continue to support as many businesses as we possibly can with this new, but small pocket of Government funding.
“We have been allocated £2.3million but this won’t go far with the need for support by our many local businesses.
“In addition to the business sectors recommended by the Government, we’ve also included more South Hams’ focused businesses such as those involved in tourism, the food and drink hospitality supply chain and also those who have marine businesses who fit the criteria stated.
“Please ensure that all information entered online is completed very carefully to ensure that businesses entitled to funding are not delayed due to errors made during the application process.”
The councils are expecting there to be a large demand for funding therefore to ensure the money is shared fairly, they will be accepting applications in three separate sections. Businesses not successful within each sections, will be rolled forward for another chance until all of the funds have been allocated.
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Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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The councils will be checking all claims against previously approved grants, data held on file and with HMRC records. Any business caught falsifying records to gain grant money will face prosecution and any funding issued will be reclaimed.
Neil Jory, leader of West Devon Borough Council, said: “We really welcome this Government initiative and shall be ensuring our £870,500 of money gets out quickly to those most in need, who so far have not received any support.
“It is unfortunate that the funding available is so limited as we anticipate more applications from deserving businesses than the funding will be able to pay out to, which will inevitably lead to disappointment.
“In addition to the four main business types supported by these grants, West Devon will also look at helping those small tourism, and food and drink hospitality supply chain businesses within the borough.”
Full guidance and the link to apply is available