The national Discretionary Grant Fund, which is being administered by local authorities, is now open for local applications from businesses and charities who meet the Government’s criteria.
The fund has been set up by the Government to accommodate certain small businesses and charities that were previously outside the scope of the business grant fund schemes that were set up as a result of COVID-19.
So if you have significant property costs that you are struggling to pay, but you were not entitled to a small business rates grant – then you still may be able to get financial help by applying for this grant.
In accordance with the government’s guidance, to be eligible, each business must meet the following criteria:
1. be within one of the government’s four outlined priority sectors
- small businesses in shared offices or other flexible workspaces
- market traders with fixed building costs
- bed & breakfasts which pay Council Tax instead of business rates
- charity properties in receipt of charitable business rates relief which would otherwise have been eligible for Small Business Rates Relief.
2. meet the following requirements
- be a small or micro business, as defined in Section 33 Part 2 of the Small Business, Enterprise and Employment Act 2015 and the Companies Act 2006
- have relatively high ongoing fixed property-related costs
- be able to demonstrate that they have suffered a significant fall in income due to the COVID-19 crisis or
- occupy property, or part of a property, with a rateable value or estimated rateable value below £51,000
The grants are being administered by your local authority so you will need to check on your local authority website for more details.
How To Apply
Most local authorities now have online application forms that you can complete. You would need to search for Business Grants or Discretionary Grant on your local authority website to find the relevant page.
Applicants who are assessed as meeting the criteria will be prioritised through the evaluation process and awards of the grant will then made from within the Council’s funding allocation that has come from central Government.
How Should You Account For The Grant?
The grant is classed as taxable income and should be recorded as grant income in your profit and loss account. We recommend you set up a separate income account code in your Profit And Loss account so you can separate grant income from your trading income.