Cheshire East Council has today launched a £4.28m discretionary fund, its' share of funding to support small businesses following the Government announcement on 2nd May and guidance to Councils provided a week later.
The Business Secretary Alok Sharma and Minister for Regional Growth and Local Government, Simon Clarke spoke to local authorities in England setting out that up to £617 million would be made available. This is an additional 5% uplift to the £12.33 billion funding previously announced for the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF), so up to £617 million.
In Cheshire East, the scheme is finally going to be open for applications from Monday (1 June) at 8am. The council is asking prioritised businesses that think they may be eligible, to prepare their evidence in advance – as allocation will be on a first-come-first-served basis.
The funding, which will be issued in a phased approach, will initially be open to applications for a 14-day period for the following prioritised businesses:
- Small businesses in shared offices or other flexible work spaces, such as business centres and science parks, which do not have their own business rates assessment;
- Regular market traders, who do not have their own business rates assessment;
- Bed and breakfast businesses, which pay council tax instead of business rates; and,
- Charity properties in receipt of charitable business rates relief, which would otherwise have been eligible for small business rates relief or rural rate relief.
It is anticipated that the majority of grants awarded will be for £10,000 or less although some retail, hospitality and leisure businesses may be eligible for grants of £25,000.
The funding policy, which was agreed 28 May, has strict eligibility criteria including mandatory requirements set by government, which businesses will need to review before they apply. Some of the criteria are that businesses:
- Are trading from a business premises in Cheshire East;
- Are able to demonstrate relatively high ongoing fixed property-related costs;
- Can demonstrate they have suffered a significant fall in income due to the Covid-19 pandemic;
- Have fewer than 50 employees;
- Were trading on 11 March 2020 and are not in administration or insolvent;
- Are not eligible for any other central government cash grant;
- In receiving the grant, it would comply with State Aid requirements; and,
- Occupy a property, or part of a property, with a rateable value of below £51,000 or annual rent below £51,000 or annual mortgage payments below £51,000.
These grants offer a very much needed lifeline to some businesses, which have been unable to claim for existing government grant schemes – but the funding is limited.
Local Authorities like Cheshire East are able to use their discretion to make support payments to business outside of their grants list, but the need for prioritisation is clear and the Council will have to phase their approach based on this need. Sadly, once this money has gone, it's gone.
The application form will be on the council website and businesses will need to submit some detailed evidence so that the business’ eligibility can be assessed. Cheshire East Council recommend that businesses prepare this detailed evidence in advance as applications will be dealt with in order of receipt and grants will be awarded until the funds run out.
A Council spokesman stated that; “We would advise any business owners, who think they meet the prioritised criteria, to submit their application form as soon as possible, when the scheme opens at 8am on Monday 1 June.
“Our business teams will be doing all they can to allocate this new funding to those who are eligible but, with a finite pot of money, we ask for patience and kindness to staff, who are trying to do all they can to help and support as many businesses as possible at this difficult time.”
More information, including a full list of criteria and evidence required before an application can be submitted, can be found by visiting: www.cheshireeast.gov.uk/covidDGS
The discretionary grant scheme application form will be available at 8am on 1 June until 8am on 15 June.
Businesses that are eligible for this scheme will be assessed against the agreed policy, which can be viewed on the website.
If sufficient grant funds remain after the first phase of applications, the council may offer future phases to additional priority businesses against varying criteria. Businesses that have received money from other grant schemes, such as the small business grant scheme or the retail, hospitality and leisure grant scheme will not be eligible for a discretionary grant.