CBC Discretionary Grant Scheme
Discretionary Grant Funding
In response to the Coronavirus, COVID-19, the government announced there would be support for small businesses, and businesses in the retail, hospitality and leisure sectors, delivered through the Small Business Grant Fund and the Retail, Leisure and Hospitality Grant Fund.
An additional fund was announced in May 2020 and is aimed at small businesses who were not eligible for the Small Business Grant Fund or the Retail, Leisure and Hospitality Fund.
Section 1 of the Localism Act 2011 provides Corby Borough Council with the authority to make these payments.
Who will receive the funding?
These grants are predominantly aimed at:
- Small and micro businesses, as defined in Section 33 Part 2 of the Small Business, Enterprise and Employment Act 2015 and the Companies Act 2006.
- Businesses with relatively high ongoing fixed property-related costs
- Businesses which can demonstrate that they have suffered a significant fall in income due to the COVID-19 crisis
- Businesses which occupy property, or part of a property, with a rateable value or annual rent or annual mortgage payments below £51,000.
The following list is not exhaustive but the Corby Borough Council will be prioritising the following types of businesses for grants:
- 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;
- Regular market traders with fixed building costs, such as rent, who do not have their own business rates assessment;
- Bed & Breakfasts which pay Council Tax instead of business rates; and
- Charity properties in receipt of charitable business rates relief which would otherwise have been eligible for Small Business Rates Relief or Rural Rate
Who is excluded?
No grants will be paid to businesses that are eligible for any other support scheme (other than the Coronavirus Job Retention scheme) and any organisation which has received grants from any other central government related scheme are ineligible for funding from the Discretionary Grants Fund.
This includes schemes such as but not limited to:
- Self-Employment Income Support Scheme * see footnote
- 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
Only businesses which were trading on 11 March 2020 are eligible for this scheme.
Grants will not be paid in respect of properties that were empty or unoccupied on 11th March 2020 even if business rates were charged.
Companies that are in administration, are insolvent or where a striking-off notice has been made are not eligible for funding under this scheme.
Ratepayers with a rateable value of 51,000 or over are excluded from this scheme.
How much will be paid?
Corby Borough Council will be granting a maximum of:
£10,000 Small businesses in shared offices or flexible workspaces.
£5,000 Regular market traders with fixed building costs.
£5,000 Bed & Breakfasts which pay Council Tax instead of business rates
£10,000 Charities in receipt of charitable business rate relief where the rateable value is up to or including 15,000
£25,000 Charities in receipt of charitable business rate relief where the rateable value is above 15,000 but under 51,000
£1,000 Businesses working from home who can demonstrate hardship as a result of the coronavirus outbreak
Any other grants and the levels are paid at the discretion of the Corby Borough Council’s Section 151 Officer.
All grants are capped at £25,000.
Tax and state aid
Grant income received by a business is taxable therefore funding paid under the Local Authority Discretionary Grants Fund will be subject to tax.
Although the United Kingdom left the EU on 31 January 2020, under the Withdrawal Agreement the State aid rules continue to apply during a transition period, subject to regulation by the EU Commission.
All applicants will be required to sign to confirm they do not exceed state aid regulations if they receive a grant payment.
How to apply (from 1 June 2020)
This scheme is now closed. 4 June 2020
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 £10.2 million
- Balance sheet total: Not more than 5.1 million
- Number of employees: a headcount of staff of less than 50
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
Businesses who are eligible for the Self-Employed Income Support Scheme (SEISS) are now eligible to apply for the Local Authority Discretionary Fund.