covid-19 business support grants: derbyshire dales … · 2020. 7. 16. · business interruption...
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COVID-19 Business Support Grants:
Derbyshire Dales Discretionary Grant Fund Guidance
FINAL CALL FOR APPLICATIONS 10.07.2020
Introduction
1. This guidance sets out the criteria under which small and micro businesses will
qualify to make an application to the Derbyshire Dales Discretionary Grant
Fund. The Fund widens access to support to businesses struggling to
survive due to the Coronavirus shut down but unable to access other
Government COVID related grant schemes.
2. The Fund is aimed at certain small and micro businesses which: are not eligible
to access the Small Business Grant Fund (SBGF) and the Retail Hospitality and
Leisure Grant (RHLG); have high ongoing, fixed property-related costs and can
demonstrate that they have suffered a significant fall in income due to COVID-
19. Derbyshire Dales District Council is responsible for administering the
Discretionary Grant Fund.
3. This final call for applications to the Discretionary Grant Fund extends the
eligibility criteria to include local, independent small and micro
businesses with high, ongoing fixed premises costs occupying
business property with a combined rateable value or annual rent below
£101,000. To support the phased re-opening of the economy, priority will
be given to businesses required to close and unable to trade during
the shutdown, specifically pubs and restaurants, hotels and caravan
sites and local visitor attractions.
4. Applications from other local small and micro businesses (occupying
business property with a combined rateable value or annual rent below
£101,000) with high, ongoing fixed property-related costs experiencing
significant disruption due to COVID-19 will also be considered, with
priority given to businesses in manufacturing and engineering. See
section 16 for further details of the priorities under the final call.
5. Please note applicants (successful or unsuccessful) for Discretionary Grant
under the previous call for applications are not eligible to re-apply. Eligible
applications received under the previous call from businesses occupying
business property with a combined rateable value or annual rent below
£101,000 will be considered under this final call without the need for re-
submission.
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Scope of the Fund
6. Under the guidance issued to the District Council by Government it has been
determined that the Fund is aimed at:
Small and micro businesses, including any linked or partner
enterprises, as defined in Section 33 Part 2 of the Small Business,
Enterprise and Employment Act 2015 and the Companies Act 2006
Businesses with high ongoing fixed property-related costs
Businesses which can demonstrate that they have suffered a
significant fall in income due to the COVID-19 crisis
Businesses which occupy property, or part of a property, with a
rateable value or annual rent or annual mortgage payments below
£51,000 (businesses that would otherwise meet the above Government
criteria but have a combined rateable value or annual rent below
£101,000 may apply under the Local Discretion Priorities – see section
16).
7. To be a small business, under the Companies Act 2006, a business must
satisfy two or more of the following requirements in a year:
- Turnover: not more than £10.2 million
- Balance sheet total: not more than £5.1 million
- Number of employees: a headcount of staff of less than 50
8. To be a micro business, under the Companies Act 2006, a business must
satisfy two or more of the following requirements:
- Turnover: not more than £632,000
- Balance sheet total: not more than £316,000
- Number of employees: a headcount of staff of not more than 10
9. Government has also asked local authorities to prioritise certain types of
businesses for support from the Discretionary Grant Fund. These are
retained in section 16.
Core Eligibility Criteria
10. To be eligible to apply for a grant under the Derbyshire Dales Discretionary
Grant Fund, a small or micro business (as defined above) must:
be based in the Derbyshire Dales
have been trading on 11 March 2020
trade from premises used wholly or mainly for business purposes
be able to evidence relatively high ongoing fixed building costs
including: rent; rates (where applicable); premises insurance;
utilities and commercial mortgage interest payments:
- businesses occupying business property with a combined
rateable value or annual rent below £51,000 must be able to
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evidence fixed property costs of at least £2,400 per annum to
be eligible to apply
- businesses occupying business property with a combined
rateable value or annual rent of £51,000 or greater but below
£101,000 must be able to evidence fixed property costs of at
least £25,000 per annum to be eligible to apply
be able to evidence a significant reduction in turnover relative to the
size of the business due to the impact of COVID-19:
- all businesses must be able to demonstrate a reduction in
turnover of 20% or more to be eligible to apply.
Applications must satisfy these core criteria in order to be assessed.
11. Small or micro businesses will also be ineligible to apply if they:
o have received cash grants from the following central Government
COVID related schemes:
- Small Business Grant Fund
- Retail, Hospitality and Leisure Grant
- The Fisheries Response Fund
- Domestic Seafood Supply Scheme
- The Zoos Support Fund
- The Dairy Hardship Fund
o are in administration, are insolvent or where a striking-off notice
has been made (at the time of application)
o were an undertaking in difficulty on 31 December 20191
12. Businesses that have previously been unable to apply for a grant in their own
right as they do not have a separate rating assessment may now apply to this
Fund if they meet all of the other eligibility criteria.
13. Businesses who have applied for the Coronavirus Job Retention Scheme,
Business Interruption and Bounce Back Small Business Loan schemes are
eligible to apply to this Fund. Businesses who are eligible for the
Government’s Self-Employment Income Support Scheme are eligible to
apply to the Discretionary Fund as well.
14. As with all COVID-19 Business Support Grants, funding assistance from the
Discretionary Grant Fund is subject to State Aid rules – see section 38.
The District Council’s Approach
15. The Discretionary Grant Fund is intended to fill gaps within the current
Government COVID related grant schemes and support businesses with
high ongoing fixed property costs.
1 within the meaning of Article 2(18) of the General Block Exemption Regulation
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16. The District Council has been allocated limited funds from Government and will
not be able to support every business within the general scope of the
Fund. Therefore, in line with Government guidance and applying local
discretion, the District Council’s final call for applications will prioritise the
following types of businesses for support (retaining Government priorities and
further extending local discretion):
National Priorities:
Small or micro businesses operating from shared offices or other
flexible workspaces without their own business rates assessment –
this includes: managed office / workspace, mills and units in industrial
estates and business parks
Regular market traders i.e. market traders based in the Derbyshire
Dales, trading most days of the week (prior to COVID-19 restrictions)
at weekly stall markets or from established units, with fixed building
costs including regular rent; and other micro businesses operating
under licence from premises within District Council landholdings
without their own independent business rates assessment
Bed & Breakfast accommodation registered as food businesses with
the District Council which pay Council Tax instead of business rates
Charity properties in receipt of charitable business rate relief which
would otherwise have been eligible for Small Business Rate Relief or
Rural Rate Relief (i.e. charities with a single premise, with a rateable
value of less than £15,000) if they did not claim 100% charity rate relief.
Charities must be local i.e. a charity which operates within the
Derbyshire Dales and whose charitable objects primarily benefit
residents of the Derbyshire Dales and is not affiliated to a national
charitable organisation. Applications from local charities occupying
business property with a combined rateable value or annual rent below
£51,000 may also be considered.
Local Discretion Priorities:
Small and micro businesses beyond the Retail, Hospitality and
Leisure sectors ineligible under other COVID related grant schemes
occupying business property with a combined rateable value or
annual rent below £51,000 (this includes businesses in the supply
chain to the visitor economy sector)
Small and micro businesses2 required to close and unable to trade
(to any extent) during the shutdown occupying business property with
a combined rateable value or annual rent below £101,000. The
following businesses shall be considered as priority: pubs and
restaurants, hotels and caravan sites and local visitor attractions.
Applications from businesses that are part of national chains or
franchises will not be considered
2 Only businesses eligible for the Expanded Retail Discount will be considered
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Other small and micro businesses with high, ongoing fixed business
property-related costs able to evidence significant disruption due to
COVID-19 occupying business property with a combined rateable
value or annual rent below £101,000. Businesses in the following
sectors shall be considered as priority: manufacturing and
engineering. Applications from businesses that are part of national
chains or franchises will not be considered
Self-Catering accommodation providers with accommodation
qualifying as Furnished Holiday Lets (FHLs with a HMRC Tax Return
Self-Assessment 105 declaration) on 11 March 2020 which pay
Council Tax instead of business rates where this is the owner’s
primary source of income.
17. In exceptional cases, applications from local independent businesses that
do not fall into the above categories, but in the view of the District Council
can demonstrate significant hardship (due to COVID-19) relating to high,
ongoing fixed business property-related costs, may be considered. This
category will only be considered if there are adequate remaining funds once
the other categories have been assessed.
18. All required supporting evidence must be provided. Incomplete applications will
not be considered. If you are uncertain as to your eligibility, please contact us
prior to making an application.
19. For the avoidance of doubt, the following types of businesses will be
ineligible to apply to the Discretionary Grant Fund (taking account of the
primary aims of the Fund):
Business Type Casual market stallholders and mobile and festival catering outlets without fixed
building costs and not paying a regular rent e.g. those attending festivals and events
Care homes
Landlords and property developers
Primary agricultural production (with the exception of dairy farmers not eligible for the Dairy Hardship Fund with an average reduction in milk price between 20%-25%)
B&Bs not registered as a food business with Environmental Health
Home offices/workers
Businesses which have received a Discretionary grant in another district
Financial services e.g. banks, building societies, cash points, bureaux de change, short-term loan providers
Post office sorting offices
GP Practices
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20. Following a review of take up from businesses prioritised in section 16, the
District Council may, at its discretion, consider applications received from
eligible small and micro businesses within the Derbyshire Dales ineligible
for support from other central Government COVID related grants beyond
the priority categories identified should sufficient funding remain available.
Privately run medical services will only be considered in exceptional
circumstances and subject to funding availability.
21. Grants will not be awarded to organisations whose activities are contrary to
the vision and values of the District Council as set out in section 5.4 of the
Council’s Policies for Discretionary Rates Reliefs December 20183.
22. The District Council reserves the right to vary the terms of the Fund at any
time, and without notice, should it be necessary to do so.
Application Process and Levels of Grant
23. The District Council has prepared an on-line application process for the
Fund. This will be the route for all applications (except in exceptional cases
where an applicant does not have internet access).
24. In line with Government guidance, following verification and eligibility
checks, District Council officers will assess applications according to the
following criteria:
no. of employees within the applicant business
level of ongoing fixed costs faced by the business
trading status of the business i.e. whether some trading has
continued, a business has had to close completely or provides
services that are not permitted due to social distancing rules or has not
been able to move to on-line services
scale of impact of COVID-19 losses.
25. In order for the Discretionary Grant Fund to benefit the maximum number and
range of eligible small and micro businesses, the following levels of grant are
proposed:
Grant Levels:
£2,500
£5,000
£7,500
£10,000
£25,000
3 NNDR_Discretionary_Reliefs_Policy_Approved_5_December_2018.pdf
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26. The Government’s expectation is that payments under £10,000 will be
appropriate in many cases and particularly for micro businesses. The
Discretionary Grant Fund has been developed accordingly. The District
Council may, at its discretion, cap the level of grant awarded to applicants
at £10,000 to benefit the maximum number of eligible businesses. Grants of
£25,000 will only be made in exceptional circumstances.
27. One grant will be considered per qualifying business including those with
more than one business property. The business will also need to confirm its
intention to continue trading following any grant award.
28. Eligible applications will be assessed using the following approach:
Impacts Question Answer Score Weighting
a) No. of Employees
Business Size – No. employees (headcount - ex. owner / proprietor)
11-49 3-10 1-2 0
5 3 1 0
3
b) Level of ongoing fixed costs
Annual Business Premises Costs
For property <51k RV:
>£15,001 £15,000-£5,000 <£5,000 For property <£101k RV:
>£75,001 £35,001-£75,000 <£35,000
5 3 1
5 3 1
3
c) Trading status
Impact of COVID-19 on Trading
Closed throughout / no trading
Partial trading / recently opened / restricted to on-line trading
Open throughout / full trading
5
3
1
1
d) Financial impact from COVID-19
Impact on turnover
50%+ down 49%-31% down 30%-20% down
5 3 1
2
Sole or primary source of income
Sole source
Primary source i.e. 50% or more
49%-33%
Less than 33%
5
3
1
0
1
MAX 50
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29. Subject to the application score, level of demand and funding
availability, the level of grant awarded will vary. The highest scoring
applications in each band will be awarded higher levels of grant (unless
extenuating circumstances indicate otherwise - see below). The following
indicative scoring / grant thresholds are proposed:
Score Grant Level
30 or less £2,500 - £7,500
31 to 44 £10,000
45 or more £25,000
30. Under certain circumstances, the District Council may, at its discretion,
adjust the scoring / grant thresholds. These include (but are not limited to):
no grant shall be awarded higher than that which a particular
business would have received if they had been entitled, as a
ratepayer, to Small Business Grant Fund or Retail Hospitality and
Leisure Grant or other COVID related grants
cases where an eligible business has suffered significant disruption
or is facing significant hardship relating to high, ongoing fixed
property-related costs and the failure of the business would have a
significant local economic impact warranting a higher level of grant.
31. The District Council will not approve or make payment of a further grant to a
business that has already received a grant or partial grant passed on by a
landlord under one of the schemes listed in section 11.
32. As a condition of support, businesses awarded discretionary grant in
properties without their own business rates assessment will be required to
apply to the VOA for a rating assessment and register with the District
Council for NNDR (and associated reliefs) where applicable.
33. Should the Fund be oversubscribed the District Council reserves the right
to end the call for applications and only consider those applications received
to this point.
Submission of Applications
34. The District Council will hold an open call for applications and review the
funding position at the end of July 2020. The District Council may close the
call at any time if sufficient eligible applications have been received.
Please note applicants (successful or unsuccessful) for Discretionary Grant
under the previous call for applications are not eligible to re-apply. Eligible
applications received under the previous call from businesses occupying
business property with a combined rateable value or annual rent below
£101,000 will be considered under this final call without the need for re-
submission.
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35. Please be aware that processing may take upwards of 20 working days due
to the level of due diligence we will need to undertake to assess each
application following which payments to successful applicants will
commence. Once the funding is exhausted no further grants will be awarded.
Allocation of Discretionary Funds
36. To ensure that, as far as possible, the Discretionary Grant Fund benefits
the maximum number and range of eligible small and micro businesses
making up the Derbyshire Dales economy (and taking account of the
Government’s approach to targeting certain business sectors), the available
funding will be ring-fenced as follows:
30% to eligible visitor accommodation businesses (not in receipt of
other COVID related grants) which pay Council Tax as defined in the
priorities set out in section 16
70% to the remaining national priorities and areas of local discretion
identified in section 16.
37. The District Council will consider eligible applications received according to
this notional split of funds and determine grant awards accordingly. Ring
fenced sums may be varied at the District Council’s discretion .
State Aid
38. All grants provided under this Fund must be State Aid compliant.
Businesses applying to the Fund are required to confirm that in accepting a
grant payment the business, including any linked enterprises, will not
exceed State Aid limits. Further details can be found here
39. Payments of up to and including £10,000 will be made under the De Minimis
Aid regulation, meaning applicants can receive up to €200,000 of aid over a
three fiscal year period (i.e. your current fiscal year and previous two fiscal
years). Any business in receipt of State Aid must submit a signed State Aid
Declaration letter and their grant claim will not be processed until the letter
is provided.
40. Payments of £25,000 (or £10,000 where the De Minimis threshold has been
reached) will be paid under the COVID-19 Temporary Framework for UK
Authorities scheme under which the maximum level of aid that a company
may receive is €800,000 (€120,000 per undertaking active in the fishery and
aquaculture sector or €100,000 per undertaking active in the primary
production of agricultural products). This is across all UK schemes under
the terms of the European Commission’s Temporary Framework. Recipients
must also declare they were not an undertaking in difficulty on 31 December
2019 (as defined earlier in this guidance) but faced difficulties or entered
into difficulty thereafter as a result of the COVID-19 outbreak. This aid is in
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addition to any aid that you may have received under the De Minimis
regulation.
41. Recipients will need to declare any grant funding awarded to any other aid
awarding body who requests information on how much aid you have
received.
Evidence Required
42. Eligible businesses/charities will be required to demonstrate that they meet
the eligibility criteria for the Fund. To do this, applicants are required to:
provide evidence to demonstrate the financial impact of COVID-19
on the business. This will take the form of filed annual accounts for
previous years, current management accounts (where available),
and bank statements available for the current period i.e. March to
June 2020 and for the equivalent period in 2019 to evidence impact
on turnover
provide evidence of their fixed property-related costs with their
application i.e. evidence of rent payments, rates, commercial
mortgage interest payments, premises insurance, utilities or HMRC
Tax Return Self-Assessment 105 form declaration for FHLs
provide business bank account details for payment purposes
(should their application be successful). Businesses that are eligible
for a grant will be paid the grant directly into their bank accounts
confirm the business complies with the definition of a small or micro
business
confirm the business was trading on 11 March 2020
confirm the business intends to continue trading following any grant
award
confirm that the business has not received any other Government
COVID related grant support
confirm the business was not an undertaking in difficulty on 31
December 2019 and is not in administration, liquidation or in the
process of being dissolved or subject to a striking-off notice
confirm the award of grant would not result in the business,
including any linked enterprises, exceeding the maximum level of
State Aid permissible.
Information provided by businesses will be subject to checks by the
District Council’s Auditor. The District Council reserves the right to
request further evidence to support the application where this is deemed
necessary and not to proceed any further with an application if there is
doubt over the evidence provided.
Decisions
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43. Applications will be determined by District Council Officers using the criteria
set out in this document. A panel of officers will use the criteria and
approach described in this guidance to determine how much grant, if any,
will be awarded. A record will be made of the scoring, the decision and the
grant awarded, or the reasons for rejection. The decision will be notified to
the applicant in writing (email) and where a grant has not been awarded, a
short explanation of the reason will be given.
Appeals Process
44. If you have been informed that your business is not eligible for a
discretionary business support grant and you feel that the decision is wrong,
you can appeal for that decision to be looked at again. Your case will then
be reviewed by a different officer(s) to check that the initial decision was
correct. Details of the District Council’s Appeals process are available here
45. There will be no appeal process for businesses/charities in relation to the
grant amount they are awarded.
Other Important Information
46. Grant income received by a business is taxable therefore funding paid under
the Discretionary Grant Fund will be subject to tax. Only businesses which
make an overall profit once grant income is included will be subject to tax.
47. All grant claims will be processed through a series of checks, including
checks against our business rates database and checks for fraud including
use of the Government Spotlight anti-fraud software and the National Fraud
Initiative database. The District Council reserves the right to verify/put on
hold any application to enable detailed checks to be carried out.
.
48. The Government and the Council will not accept deliberate manipulation
and fraud. Information submitted will be subject to checks by the District
Council’s Auditor at the Council’s discretion. Any suspected fraud cases will
also be investigated by the Auditor. Any business caught falsifying their
records to gain grant money will face prosecution and any funding issued
will be subject to claw back, as may any grants paid in error.
49. The Government guidance on which this document is based has been
subject to change and, as such, this document may also be subject to
change. The District Council does not accept any liability if any of the
changes affect the eligibility of any business for the Discretionary Grant
Fund.
50. In addition, the District Council does not accept any liability for any issues
that may arise for businesses because of applying for, receiving, or not
receiving grant payments under this Fund.
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51. Enquiries about the Fund can be emailed to
Privacy Notice
Derbyshire Dales District Council takes your privacy seriously. We will treat all
personal information provided in confidence and store it securely in accordance with
the Data Protection Act 2018 and General Data Protection Regulations.
Your information will be used for the purpose for which it was intended, to provide a
Coronavirus community response.
Your data may be shared with other departments within the Council, other Government
Departments, Councils and third party processors operating on their behalf. We also
share information with other enforcing authorities for the purpose of preventing fraud,
misuse of public funds and any legal or statutory requirements.
For more information on how we process your personal data and your rights as a data
subject, visit www.derbyshiredales.gov.uk