Additional Restrictions Grant (Phase One) Guidelines

Introduction

  1. This guidance has been updated to advise businesses that are required to close within Tier 4 restrictions. 

Eligibility

  1. Businesses that were open as usual and providing in-person services to customers from their business premises and then required to close  under Tier 4 restrictions.
  2. This includes, non-essential retail, personal services, leisure & entertainment or cafes/restaurants that operate primarily as an in-person venue but have been forced to close and cannot trade during the lockdown period.
  3. Full Closure List
  4. Subject to State aid limits, businesses will be entitled to receive a grant for each property for which fixed payments are associated, by way of rent or mortgage and associated fixed costs.

Exclusions to Additional Restrictions Grant Phase One

  1. Businesses that can continue to trade because they do not depend on providing direct in-person services from premises and can operate their services remotely (e.g. accountants, solicitors).
  2. Businesses in areas outside the scope of the localised restrictions, as defined by government, are also excluded.
  3. Businesses which are eligible for Local Restrictions Supports Grants (Open and Closed) are not eligible for the Additional Restrictions Grants Phase One.
  4. Businesses which have been forced to close to passing trade but are able to conduct a click and collect, delivery etc.
  5. Businesses that have chosen to close but have not been required to, will not be eligible for this grant.
  6. Businesses which have already received grant payments that equal the maximum levels of State Aid permitted under the De Minimis Regulation or the COVID-19 Temporary State Aid Framework
  7. For the avoidance of doubt, businesses that were in administration, are insolvent or where a striking-off notice has been made at the date of the local lockdown are not eligible for funding under this scheme
  8. Businesses that are still subject to national closures (e.g. nightclubs) will not be eligible (these are supported through an additional fund, please refer to business rates information on the Surrey Heath Borough Council website).

Evidence required for the Additional Restrictions Grant Phase One Application

  1. For an application to be considered, we require businesses to demonstrate that they meet the eligibility criteria stated above. We anticipate that to do this, you will need to provide:
  • Evidence of the level of fixed costs faced by your business, whether your business has had to close completely and are unable to trade online.
  • Confirmation of State Aid compliance.

State Aid

  1. There is a requirement for all grants made under this Additional Restrictions Grant Phase One to be State Aid compliant. Please see further government guidance on this (Section 60-63).

How much funding will be provided to successful businesses?

  1. Eligible businesses who are within the relevant SHBC area covered by Tier 4 restrictions.
  2. The grant levels and eligibility criteria are presented in the table below:
Category Maximum Grant Amount Pro-Rata day rate
Fixed costs (Rent or Mortgage, Council tax) above £51,000 per annum  £3000 £107.14
Fixed costs (Rent or Mortgage, Council tax) above £15,000 but below £51,000 per annum  £2000 £71.42
Fixed costs (Rent or Mortgage, Council tax) under £15,000  £1334 £47.64
 
Fixed costs include property costs such as rent, rates, council tax or mortgage payments.
  1. Eligible businesses will get one grant for each property liable for business rates within the lockdown period stated in point 16.

The Application Process for Businesses

  1. We are expecting this grant funding to be oversubscribed so it is important all businesses applying give as much information as possible and ensure they meet the criteria.
  2. As a condition of funding we will expect the business applying to sign a declaration stating that they are not committing fraud and that they are fully complying with any State Aid limits, as well as giving the SHBC permission to make pre payment checks using specialist Government software, which may include a check using Experian provided software to validate bank details. In addition you should be aware that you may be contacted for research purposes by the Department for Business, Energy and Industrial Strategy and that your data will be shared with the Department for Business, Energy and Industrial Strategy.
  3. In addition to meeting the criteria set out above the Additional Restrictions Grant Phase One will only be awarded to support local businesses whose intention it is to continue to trade and do business in the local area after lockdown restrictions have been lifted.
  4. SHBC will investigate if any business applying shall be liable for business rates, if not already liable, and if SHBC considers a Business Rate liability exists the property will be referred to the Valuation Office Agency. Conditionality of funding will be dependent on the business applying being committed to this.

The Application Process – The Council

  1. The application forms will be available online. No paper copies will be available. This electronic form including the declaration must be fully completed with all the required evidence to be considered for a grant.
  2. This application process will allow SHBC to undertake pre-payment checks to confirm eligibility.
  3. Application forms will need to be completed by businesses who have not benefitted from the Additional Restrictions Grant Phase One before.
  4. SHBC will write to the business, stating that by accepting the grant payment, the business confirms that they are eligible for the grant scheme, including that any payments accepted will be in compliance with State Aid requirements.
  5. In the event of requiring a second grant, SHBC will write to the Business directly asking if they wish to benefit from a second grant prior to processing the application and payment.

Payments of Grant

  1. Payment of the grant will be to a nominated bank account. The nominated bank account maybe subject to checks using Experian software provided by Central Government.
  2. Payments will be made each 28 day period in the event of further Tier 4 restrictions and pro rata payments be made accordingly.

Managing the risk of fraud

  1. SHBC will not accept deliberate manipulation or fraud - and any business caught falsifying their records to gain grant money may face prosecution and any funding issued will be subject to claw back, as may any grants paid in error.
  2. All information is subject to internal and external audit checks.

Sharing Information

  1. By applying for an Additional Restrictions Grant Phase One all applicants give authority to SHBC to share data for efficient system administration and to protect the Public Purse, subject to the GDPR. This will include sharing data with Surrey County Council and other Local Authorities.
  2. The Council will be required to share data with Government Departments for monitoring and other reasons. By applying for Additional Restrictions Grant Phase One all applicants give authority for this disclosure.

Other Information

  1. Grant income received by a business is taxable, therefore funding paid under the SHBC Additional Restrictions Grant Phase One will be subject to tax. Only businesses which make an overall profit once grant income is included will be subject to tax.
  2. Grant income may also affect the amount of benefit you can receive.
  3. The Councils do not accept any liability for any issues that may arise for businesses because of applying for, receiving, or not receiving grant payments under this scheme.