What cash grants are available to support businesses during the cornonavirus/COVID-19 crisis?

• The Small Business Grant Fund (SBGF) provides grant funding for businesses eligible for Small Business Rates Relief (SBRR) and Rural Rates Relief (RRR).
• The Retail, Hospitality and Leisure Grant (RHLG) is provided to businesses in England in receipt of the rates Expanded Retail Discount with a rateable value of less than £51,000.
• A Discretionary Grant Fund of £25,000, £10,000 or any amount under £10,000 for small and micro businesses that are not eligible for other grant schemes.
• Fisheries Response Fund
• Zoos Hardship Fund
• Dairy Hardship Fund

Small Business Grant Fund, Rural Rates Relief and Retail, Hospitality and Leisure Grant

Grant        Eligibility criteria

£10,000     Any business eligible for Small Business Rates Relief (SBRR) and Rural Rates Relief (RRR)

£10,000     A retail, hospitality and leisure business with a rateable value of up to £15,000

£25,000     A retail, hospitality and leisure business rateable value of over £15,000 and less than £51,000

£ nil           Businesses with a rateable value of £51,000 or over are not eligible for this scheme

Hereditaments (premises) included in this scheme are those which on the 11 March 2020 were eligible for relief under the business rate Small Business Rate Relief Scheme (including those with a Rateable Value between £12,000 and £15,000 which receive tapered relief) or are eligible to the Expanded Retail Discount and have a rateable value of less than £51,000.

Excluded properties

• Hereditaments occupied for personal uses. Examples of where there may be personal use include private stables and loose boxes, beach huts and moorings.
• Car parks and parking spaces.
• Businesses which as of the 11 March were in liquation or were dissolved.
• Hereditaments with a rateable value of over £51,000.

Only one grant may be awarded per hereditament.

See: Small Business Grant Fund and Retail, Hospitality and Leisure Grant Fund Guidance

Discretionary Grant Fund

A Discretionary Grant Fund for small and micro businesses that are not eligible for other grant schemes.

A grant of £25,000, £10,000 or any amount under £10,000.

A business is potentially eligible if it:

• is based in England
• has fewer than 50 employees
• has fixed building costs such as rent
• was trading on 11 March 2020
• has been adversely impacted by the coronavirus
• are not eligible for the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund.

Priority applications are given to:

• 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.

You cannot apply if:

• Your business is in administration, insolvent or has received a striking-off notice.
• If you’re already claiming under another government grant scheme, although you may also claim for the Coronavirus Job Retention Scheme or Self-Employed Income Support Scheme.

How to apply

Go to your local council’s website to find out how to apply. Applications close at 9am on 15 June 2020.

Fisheries Response Fund

• £10 million financial assistance for England’s fishing and aquaculture businesses in response to Covid-19 was announced on 17 April 2020. See Fisheries Response Fund
• A further announcement on 2 June 2020 is that qualifying businesses will receive a further and final payment under the Fisheries Response Fund.

See Fisheries Response Fund further payment for eligible business.

Domestic Seafood Supply Fund (DSSS)

• This was launched on 29 April 2020 and closed on 11 May 2020.

See DSSS scheme

Zoos Hardship Fund

An animal welfare grant of up to £100,000 for your zoo or aquarium affected by coronavirus (COVID-19).

You can apply to the Zoos Support Fund if your zoo or aquarium is based in England and either:

• holds a licence (full or dispensation) under the Zoo Licensing Act 1981
• has been granted an exemption under the Zoo Licensing Act 1981 and holds a licence under the Animal Welfare (Licensing of Activities Involving Animals) Regulations 2018

See Support for Zoos and Aquariums

Dairy Hardship Fund

• Farmers who have lost more than 25% of their income will be able to claim up to £10,000
• Eligible farmers will be able to claim for 70% of their losses based on volumes delivered in April and May.

See Defra: New funding to support dairy farmers

FAQs

Are these grants taxable?

The government have confirmed that these grants will be taxable as income. The business can then claim tax relief on the expenditure supported by the grant. Updated 27/04/20.

What are the VAT implications? Added 19/05/20

HMRC have not provided any guidance as to whether the grants will be subject to VAT or count towards turnover for VAT registration limits. Normal principles are expected to apply meaning:

• The grants would be outside the scope of VAT and no output VAT should have to be accounted for.
• The grant income should be disregarded for VAT registration and deregistration limits.

What about state aid rules?

UK Government grants counts towards state aid.

• Payments of £10,000 or less count towards the total de minimis state aid limit over a 3 year period of €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.

Fraud

Anti-fraud: any business caught falsifying their records to gain additional grant money will face prosecution and any funding issued will be subject to clawback.

External links

Small Business Grant Fund and Retail, Hospitality and Leisure Grant Fund Guidance