Support for businesses - Coronavirus (COVID-19)

Top-up to local business grant funds scheme

The government has set up a discretionary fund of £617 million for certain small businesses previously outside the scope of the business grant funds scheme.

This is an extra 5% uplift to the £12.33 billion funding previously announced for the small business grants fund and the retail, hospitality and leisure grants fund. The exact amount for each local authority will be confirmed soon.

This additional fund is aimed at small businesses with ongoing fixed property-related costs. Local authorities are being asked to prioritise businesses in shared spaces, regular market traders, small charity properties that would meet the criteria for small business rates relief, and bed and breakfasts that pay council tax rather than business rates.

However, local authorities may choose to make payments to other businesses based on local economic need. The allocation of funding will be at the discretion of local authorities.

Businesses must be small, under 50 employees, and they must also be able to demonstrate that they have seen a significant drop of income due to coronavirus restriction measures.

There will be three levels of grant payments. The maximum will be £25,000. There will also be grants of £10,000. Local authorities will have discretion to make payments of any amount under £10,000.

Further guidance for local authorities is expected soon.

Last updated 6 May 2020