Grant funding for businesses

A number of funding schemes were announced in the 11 March Budget by Chancellor Rishi Sunak to support businesses during the COVID-19 outbreak.

The funding amounts were later increased in a further announcement by the Government on 17 March.

Please note the grants are treated as taxable income.

Small business grant fund (SBGF)

In response to the Coronavirus (COVID–19) the Government announced there would be support for small businesses in the form of a Small Business Grant Scheme.

Businesses will be eligible for payment of £10,000 subject to meeting eligibility criteria set out below.

Eligibility

Businesses are eligible for SBGF if:

  • Business is based in England
  • Business property was in receipt of Small Business Rate Relief or Rural Rate Relief on 11 March 2020 (including those with a Rateable Value between £12,000 and £15,000 which receive tapered relief)

Any business who accepts this funding must confirm they comply with all the applicable State aid requirements. A business may decline the grant.

Businesses that do not receive Small Business Rate Relief or Rural Rate Relief, or businesses that are not ratepayers in the business rates system, are not eligible for the scheme.

Access to grants

Local authorities will write to businesses eligible for this grant as per their records on 11 March 2020. If you have not received communication from your local authority and believe your business is eligible for SBGF you should visit your local authority website. Most authorities have, or are setting up, online portals for application.

Receipt of grant

Payment of the grant will only be made to the person who, according to the records of the local authority, was a ratepayer in respect of the property on 11 March 2020.

Businesses with more than one business property

Businesses can only get one grant under the Small Business Grant Scheme.

Liquidated or dissolved businesses

Businesses that have been liquidated or dissolved as of 11 March 2020 are not eligible for this scheme.

Other exemptions

You cannot get SBGF for:

  • Property occupied for personal use, e.g. private stables, loose boxes, beach huts and moorings
  • Car parks and parking spaces

Retail, hospitality and leisure Grant Fund (RHLG)

The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.

  • Businesses in these sectors with a property that has a rateable value of £15,000 and under will receive a grant of £10,000.
  • Businesses in these sectors with a property that has a rateable value of between £15,001 and £51,000 will receive a grant of £25,000.

Eligibility

Businesses are eligible for RHLG if:

  • Business is based in England
  • Business with properties which on 11 March 2020 had a rateable value of less than £51,000 and eligible for a discount under the business rates Expanded Retail Discount Scheme

Properties that will benefit from the relief will be occupied hereditaments* that are wholly or mainly being used:

  • as shops, restaurants, cafes, drinking establishments, cinemas and live music venues;
  • for assembly and leisure; or
  • as hotels, guest and boarding premises and self-catering accommodation

(*a hereditament is a property which is, or may become, liable to a rate; it can include land, machinery and plant for example)

Businesses with a rateable value of over £51,000 are not eligible for the scheme.

Businesses that are not ratepayers in the business rates system are not eligible for the scheme.

Access to grants

Local authorities will write to businesses eligible for this grant as per their records on 11 March 2020.

If you have not received communication from your local authority and believe your business is eligible for RHLG you should visit your local authority website, most authorities have or are setting up online portals for application.

Businesses with more than one business property

Businesses eligible for the RHLG scheme can claim one grant per eligible property.

Receipt of grant

Payment of the grant will only be made to the person who according to the records of the local authority was a ratepayer in respect of the property on 11 March 2020.

Liquidated or dissolved businesses

Businesses that have been liquidated or dissolved as of 11 March 2020 are not eligible for this scheme.

Other exemptions

You cannot get RHLG for:

  • Property occupied for personal use, e.g. private stables, loose boxes, beach huts and moorings
  • Car parks and parking spaces

Eligible recipients will receive one grant per property. Recipients cannot receive both SBGF and RHLG on the same property.


For both grants listed above, councils are writing to all qualifying businesses so they can apply for grant funding online. Businesses who believe they qualify are being encouraged to check their local council websites for details on applications and to review Frequently Asked Questions (FAQs) on qualification criteria:

For further information on funding and support during Coronavirus, please get in touch on 01903 234094.