Businesses in England that are forced to close due to local lockdowns or targeted restrictions can now receive grants of up to £1,500 every three weeks.
To be eligible for the grant, a business must have been required to close due to local Covid 19 restrictions.
The largest businesses will receive £1,500 every three weeks they are required to close. Smaller businesses will receive £1,000.
For many businesses, this level of support may not be enough to help their cash flow.
Payments are triggered by a government decision to close businesses in a high Covid 19 incidence area.
Each payment will be made for a 3-week lockdown period. Each new 3-week lockdown period triggers an additional payment.
This new support is in addition to existing schemes to support businesses which are affected by Covid 19, such as the Coronavirus Job Retention Scheme (furlough scheme), government backed loans and business grants.
- any businesses still closed at a national level (e.g. nightclubs), will not be eligible
- if a business occupies a premises with a rateable value less than £51,000 or occupies a property or part of a property subject to an annual rent or mortgage payment of less than £51,000, it will receive £1000
- if a business occupies a premises with a rateable value of exactly £51,000 or above or occupies a property or part of a property subject to an annual rent or mortgage payment of exactly £51,000 or above, it will receive £1500
- Local authorities will also receive an additional 5% top up amount of business support funding to enable them to help other businesses affected by closures which may not be on the business rates list. Payments made to businesses from this discretionary fund can be any amount up to £1500, and may be less than £1000 in some cases.
- Local authorities will be responsible for distributing the grants to businesses in circumstances where they are closed due to local interventions
- further eligibility criteria may be determined by Local authorities
- as with other Covid business grants, local grants to closed businesses will be treated as taxable income
- Devolved administrations in Scotland, Wales and Northern Ireland will also receive additional support.
People on low incomes self-isolating in high risk areas will also receive new payments.
For further help, please check out our Business after COVID-19: Transition Knowledge Hub.