LCC Opens Applications for All Government Grants – Complete Guide

Date: 18/11/20

LCC Opens Applications for All Government Grants – Complete Guide

Lancaster City Council (LCC) has now opened applications for all available types of grant. All the following information below is based on LCC guidance, it is down to the individual council to establish eligibility criteria so if you are under a different council some of the information below may be different from how your council is running these schemes.

LCC is aiming to pay successful applications within five working days upon receipt of a valid application.

The grant system is a bit long-winded so you will have to bear with us but the grants basically cover three scenarios:

1. Businesses with a Rateable Value that have been forced to close

2. Businesses with a Rateable Value that have been financially severely impacted

3. Businesses without a Rateable Value that have been either closed or severely impacted

 

1. Businesses with a Rateable Value that have been forced to close

Under this grant there are TWO claim periods both with different rules/eligibility criteria, just because you are eligible for one claim period does not mean you will be eligible for both.

Grant 1 – Local Restriction Support Grant (Closed Addendum)

  • For businesses forced to close due to the National Lockdown restrictions and which have a business rates rateable value.
  • Click on the link to see which businesses have been required to close because of the national restrictions.
  • Your business will not be eligible if it:
    • has been able to continue to operate during the lockdown because it does not depend on providing direct in-person services from its premises
    • has chosen to close
    • has reached the state aid limit
    • was in administration, insolvent or where a striking-off notice was made on the date of the first full day of the local restrictions.

  • The grant will cover a four-week period from 5 November – 2 December 2020, payable based on your business properties rateable value:
    • If your business is eligible and has a property with a rateable value of £15,000 or under, you will receive grants of £667 per two weeks of enforced closure (£1,334 per month/4 weeks)
    • If your business is eligible and has a property with a rateable value of over £15,000 and less than £51,000, you will receive grants of £1,000 per two weeks of enforced closure (£2,000 per month/4 weeks)
    • If your business is eligible and has a property with a rateable value of £51,000 or over, you will receive grants of £1,500 per two weeks of enforced closure (£3,000 per month/4 weeks)
  • You can find more details and the link to the application form on LCC’s website here:  https://www.lancaster.gov.uk/sites/coronavirus-information/local-restrictions-support-grant-businesses-that-are-required-to-close

Grant 2 - Local Restriction Support Grant (Closed)

  • For businesses forced to close as a result of the Tier 3 Lockdown restrictions in Lancashire and which have a business rates rateable value.
  • Businesses eligible for this are those that were required to close as a result of the Lancashire Local Restrictions LCAL (Very High) that came into force on 17 October 2020 for pubs, bars and licensed clubs not operating as restaurants and 19 October for other affected businesses
  • Businesses subject to local restrictions must have been closed for the entirety of the two-week payment cycle from 17/19 October to be eligible for payment for those two weeks (until the national lockdown).
  • When the national lockdown came into effect on 5 November then this grant was superseded by Grant 1 – Local Restriction Support Grant (Closed Addendum) you can find details of this above.
  • Businesses which were forced to close and may be eligible for this grant include:
    • Pubs and bars that cannot operate as if they were a restaurant.
    • Night clubs
    • Adult gaming industry
    • Bingo halls
    • Bookmakers and betting shops
    • Casinos
    • Car boot sales
    • Soft play areas
  • The grant will cover a two-week period from 17/19 October, payable based on your business properties rateable value:
    • If your business is eligible and has a property with a rateable value of £15,000 or under, you will receive grants of £667 per two weeks of enforced closure (£1,334 per month/4 weeks)
    • If your business is eligible and has a property with a rateable value of over £15,000 and less than £51,000, you will receive grants of £1,000 per two weeks of enforced closure (£2,000 per month/4 weeks)
    • If your business is eligible and has a property with a rateable value of £51,000 or over, you will receive grants of £1,500 per two weeks of enforced closure (£3,000 per month/4 weeks)
  • You can find more details and the link to the application form on LCC’s website here:  https://www.lancaster.gov.uk/sites/coronavirus-information/local-restrictions-support-grant-businesses-that-are-required-to-close

 

2. Businesses with a Rateable Value that have been financially severely impacted - (Local Restrictions Support Grant – Open)

  • This grant is for Hospitality, Accommodation and Leisure businesses that were open, but financially severely impacted by LCAL High (Tier 2)/LCAL Very High (Tier 3) restrictions.
  • Businesses can apply for a grant from 22 September - 4 November 2020 (when Tier 2/3 restrictions began in Lancashire). These grants are paid in 28 day grant cycle periods so there are two cycle periods available.
  • The entry points to trigger the 28 day grant cycle periods are 22 September and 20 October. You must have been severely impacted for the entirety of the four-week payment cycle from 22 September to be eligible for payment from 22 September. Otherwise, you will only receive payment from 20 October – 4 November.
  • Your business may have been severely impacted if you have ongoing fixed costs and you have suffered a loss of footfall, you can prove losses in the period or you have incurred extra costs due to Covid-19.
  • Grants will be payable based on your business properties rateable value:
    • If your business is eligible and has a property with a rateable value of £15,000 or under, you will receive grants of £934 per four weeks of being severely impacted.
    • If your business is eligible and has a property with a rateable value of over £15,000 and less than £51,000, you will receive grants of £1,400 per four weeks of being severely impacted.
    • If your business is eligible and has a property with a rateable value of £51,000 or over, you will receive grants of £2,100 per four weeks of being severely impacted.
  • If your business has subsequently been required to close due to the National Lockdown then you will also need to separately apply for the LRSG Closed (See Businesses with a Rateable Value that have been forced to close) grant provided you are eligible.

 

3. Businesses without a Rateable Value that have been either closed or severely impacted – Additional Restrictions Grant (ARG)

  • For businesses without a rateable value who are closed/severely impacted by the Tier3/National Lockdown restrictions.
  • Your business is a medium, small or micro business according to the Companies Act of 2006.
  • Your business will NOT be eligible if it:
    • has been able to continue to operate during the lockdown because it does not depend on providing direct in-person services from its premises
    • has chosen to close without being severely impacted by the additional Tier 3/National Lockdown restrictions
    • has a rateable value
    • the business owner is eligible for the Self Employment Income Support Scheme or Universal Credit
    • the business owner has another business that is still trading and unaffected by the additional Tier3/National Lockdown restrictions
    • the business owner has another source of employment income
    • was in administration, insolvent or where a striking-off notice was made on the date of the first full day of restrictions
    • is in areas outside the scope of the localised restrictions, as defined by the government
    • has reached the state aid limit.

  • Eligibility is not affected if businesses have accessed the Furlough Scheme, the Kick Start scheme or is receiving any funds or support relating to re-opening or trading safely, new business services or products or new trading arrangements.
  • Grants will be payable based on fixed business costs that have not reduced due to the additional restrictions imposed by the move to Tier 3 or National Closure or Lockdown restrictions.
  • Examples of fixed business-related costs include rent, business mortgage, insurance, utilities, phone contract, ongoing maintenance contracts, franchise payments, vehicle costs, professional body memberships, subscription licences (including ICT software), equipment maintenance and loan repayments. Domestic payments (e.g. mortgage, utilities, insurance, phone charges) where the home-based business pays a share of a domestic bill are not to be allowed.
  • Available grants:
    • If your business is eligible and has fixed business costs of £1,000-£3,000 per annum, you will receive a grant of £125 per complete two week period.
    • If your business is eligible and has fixed business costs of £3,001-£6,000 per annum, you will receive a grant of £250 per complete two week period.
    • If your business is eligible and has fixed business costs of £6,001-£15,000 per annum, you will receive a grant of £450 per complete two week period.
    • If your business is eligible and has fixed business costs of £15,001 - £50,999 per annum, you will receive a grant of £700 per complete two week period.
    • If your business is eligible and has fixed business costs of £51,000 + per annum, you will receive a grant of £1,050 per complete two week period.
  • Businesses will receive a lump sum payment to cover the period to 2 December 2020.
  • Business owners who have more than one business and all of their businesses have been closed/severely impacted by the additional restrictions may make an application for each business.
  • You can find more details and the link to the application form on LCC’s website here:  https://www.lancaster.gov.uk/sites/coronavirus-information/grants-for-businesses-closed-or-severely-impacted


Alan Taylor FCCA

Author: Alan Taylor FCCA

A former pupil at Ripley St Thomas C of E High School in Lancaster, Alan joined Scott & Wilkinson directly from school in 1994 and qualified as an Accountant in 2001. Alan is the Partner with responsibility for the day-to-day...

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