What COVID-19 financial support measures for businesses will be put in place beyond 15 January 2021, given that the last assistance, including the Economic Resilience Fund Sector Specific Grant, were designed to cover the financial gap up until that date?
The ERF Restrictions Business Fund that is providing Non-Domestic Rates (NDR) based grants for non-essential retail, hospitality, leisure and tourism (NERHLT) sectors has been extended to provide a single top up payment to cover the period between the 25 January and 31 March 2021 for businesses affected by national restrictions. Taken alongside the package for December and January, this will provide businesses with four months of support.
This extended fund will provide support to almost 67,000 potentially eligible NERHLT businesses that have closed or been materially impacted as a result of national restrictions linked to the non-domestic rates.
NERHLT businesses with a rateable value up to £150k who received the ERF Restrictions Business grant in December/January via their local authority will begin receiving payments into their bank account during February, these businesses will not be required to re-register their details. If they are eligible for the payments and haven’t received the grant to date they will need to register.
This extension will also provide support to retail, leisure and tourism business properties with rateable values of between £150k and £500k p.a. This will enable support to be provided to a cohort of medium sized firms that to date have not received support via the ERF Restrictions Business Fund. These businesses will be required to register their details, as well as making a short on-line application to their respective local authority.
In addition, to support those businesses who are not registered on the NDR register and with a turnover below £50k, a further £20m phase of the Local Discretionary Fund has also been approved and will provide a £2,000 grant via a second round application and payment. Businesses will need to submit an application to the fund.
Following this grant extension the total amount of financial support for eligible businesses through the ERF Restrictions Business Fund for the period 4 December – 31 March is as follows:
- NERHLT businesses in receipt of Small Business Rate Relief (SBRR) and with a rateable value of £12,000 or less will be eligible for a £6,000 Supply chain businesses qualifying for SBRR will also be eligible for this support if they have greater than 40% reduction in turnover during the restriction period.
- NERHLT businesses with a rateable value of between £12,001 and £51,000 will also be eligible for a £10,000 payment if impacted by the restrictions. Supply chain businesses in the same rateable value bracket will also be eligible for this support if they have greater than 40% reduction in turnover during the restriction period.
- NERHLT businesses with a rateable value of between £51,001 and £150,000 will also be eligible for a £10,000 payment if impacted by the restrictions. Supply chain businesses in the same rateable value bracket will also be eligible for this support if they have greater than 40% reduction in turnover during the restriction period.
- NERHLT businesses with rateable values of between £150,001 and £500k who were not able to apply for funding in December will be entitled to a £5,000 These businesses will need to register their details through their local authority website.