Business Wales have today released further details on the firebreak and lockdown grants. These grants will be open to applications from tomorrow (28th October 2020). Availability is on a first come, first served basis so we recommend clients act quickly to secure any grants they are eligible for.
Lockdown Non-Domestic Rate Grants
Grant 1
A grant of £5,000 is being made available for retail, leisure and hospitality businesses that have been forced to close (as defined by the regulations) and occupy properties with a rateable value of between £12,001 and £51,000. You will need to be on the NDR rating list for your local authority on 1st September 2020 and will need to complete a simple registration form to receive the grant. Businesses must be liable for business rates payable to the local authority to be eligible for this grant.
Grant 2
A grant of £1,000 is being made available to businesses eligible for small business rates relief (SBRR) in Wales occupying properties with a rateable value of up to £12,000 (see exceptions below). Businesses must be liable for business rates payable to the local authority to be eligible for this grant. You will need to be on the NDR rating list for your local authority on 1st September 2020 and will need to complete a simple registration form to receive the grant. Businesses will also need to declare that they are trading and generating a turnover to be eligible for this grant.
The multiple property restriction applied to the Small Business Rates Relief scheme applies to this grant. Therefore, the same ratepayer may only receive the grant for a maximum of two properties in each local authority.
Grant 2 – Top-up Grants
Grant 2 applicants can also apply for the following top-up grants if they also meet the eligibility criteria:
• Businesses eligible for small business rates relief that have been subject to local restrictions for 3 weeks or more and have been materially impacted (>50% reduction in turnover) up to the 23rd October will be eligible for a further grant of £1,000
• and Businesses eligible for small business rates relief that have been forced to close (as defined by the regulations) as a result of the national firebreak lockdown will also be eligible for a further top up grant of £2,000 from their local authority.
Businesses will not be eligible for either grant if they fall into one of the following categories:
• Enforced closure due to having infringed social-distancing rules. However, if improvements have been made and the business has been allowed re-open, they may be eligible for the grant (subject to meeting the eligibility criteria).
• Businesses that are able to continue to trade because they do not depend on providing direct in-person services from premises and can effectively operate their services remotely (e.g. accountants, solicitors).
• Businesses that chose to close but are not required to.
• In liquidation or dissolved or in the process of being struck off.
• Breached State Aid limit.
Businesses need to confirm that, without the grant support, the viability of the enterprise will be under threat, and outline why.
Applications will be considered on an individual basis and payment of the grants is at the absolute discretion of the Local Authority.
Businesses in receipt of the Lockdown Discretionary Grant (further information provided below) are ineligible for the Lockdown Non-Domestic Grant.
How to apply:
Businesses can apply for the grant by accessing their Local Authority’s Lockdown webpage. If eligible, you will be able to access the online application form, complete the requested fields and submit your application. Please note that all fields are mandatory – failure to complete them will result in your application being rejected.
How to complete the form:
Section 1 – Information about your business
Please ensure the details in this section are accurate and complete. Application forms that have incomplete or inaccurate data will not be processed.
Section 2 – Your personal details
This part asks for information about you, ‘the applicant’.
Section 3 – Impact of Covid-19 on your business
Please confirm or otherwise if the statements on the application form apply to your business.
Section 4 – Bank Details
Please provide your correct business bank account details as this information will be used to make the grant payment to you.. Businesses should be actively trading up to the date of the national firebreak lockdown and may be required to provide evidence to demonstrate this.
Section 5 – State Aid
You must declare if you have received any State Aid (including De Minimis Aid) during the previous 3 fiscal years (i.e. current fiscal year and the previous two fiscal years) together with the amount received and details of the awarding body.
Please include all Covid-19 related financial support you have received since March 2020.Examples could include Economic Resilience Fund, Start-up Grant, Non Domestic Rate Grant (round 1)
Section 6 -Declarations
Please read the declarations carefully and tick the boxes to confirm that you accept and understand them.
Lockdown Discretionary Grants
Businesses that meet the following criteria may be eligible for the Lockdown Discretionary grants:
• Business was trading prior to 1st September 2020
• Businesses must be operating in Wales
• Businesses must have one or more of the following
o HMRC Unique Taxpayer Reference (UTR) Number
o VAT Registration Number or a VAT exemption certificate
o Company Registration Number
• Have been forced to close or have experienced a drop in turnover of >80% as a result of the national lockdown in Wales
• Employing 49 or less employees
• The business must be your main source of income (>50%)
• Supported businesses must aim to maintain employment for 12 months
• Only one application per business
• Businesses should be actively trading up to the date of the national firebreak lockdown and may be required to provide evidence to demonstrate this
• Businesses that are eligible for the Lockdown Non-Domestic Rate Grant are not eligible for this discretionary grant.
Only one of the two grants below can be applied for:
Grant 1
A discretionary grant of £1,500 is available to assist businesses that have:
• Been forced to close (as defined by the regulations) as a result of the national firebreak lockdown
• OR are able to demonstrate that the national firebreak lockdown will result in at least a 80% reduction in their turnover for that period.
Grant 2
A discretionary grant of £2,000 is available to assist businesses that have:
• Been forced to close (as defined by the regulations) as a result of the national firebreak lockdown
• OR are able to demonstrate that the national firebreak lockdown will result in at least a 80% reduction in their turnover for that period
• AND have been subject to local restrictions for 3 weeks or more up to the 23rd October and have experienced at least a 50% reduction in their turnover for that period.
Businesses will not be eligible for either grant if they fall into one of the following categories:
• Enforced closure due to having infringed social-distancing rules. However, if improvements have been made and the business has been allowed to re-open, they may be eligible for the grant (subject to meeting the eligibility criteria).
• Businesses that are able to continue to trade because they do not depend on providing direct in-person services from premises and can effectively operate their services remotely (e.g. accountants, solicitors).
• Businesses that chose to close but are not required to.
• In liquidation or dissolved or in the process of being struck off.
• Breached State Aid limit.
Businesses need to confirm that, without the grant support, the viability of the enterprise will be under threat, and outline why.
How to apply:
Businesses can apply for the grant by accessing their Local Authority’s Lockdown webpage. If eligible, you will be able to access the online application form, complete the requested fields and submit your application. Please note that all fields are mandatory – failure to complete them will result in your application being rejected.
How to complete the form:
Section 1 – Your personal details
This part asks for information about you, the applicant/business owner.
Section 2 – Information about your business
Please ensure the details in this section are accurate and complete. Application forms that have incomplete or inaccurate data will not be processed.
Section 3 – Impact of the lockdown on your business
Please confirm or otherwise if the statements on the application form apply to your business and detail how the local restrictions and national firebreak lockdown have/will impact your business.
Section 4 – Bank Details
Please provide your correct business bank account details as this information will be used to make the grant payment to you.
The local authority may request your latest bank statements and further information to confirm your bank details and evidence trading activity.
Section 5 – Statement of State Aid Received
You must declare if you have received any State Aid during the previous 3 fiscal years (i.e. current fiscal year and the previous two fiscal years) together with the amount received and details of the awarding body.
Please include all Covid-19 related financial support you have received since March 2020.
Examples could include Economic Resilience Fund, Start-up Grant, Non-Domestic Rate Grant (round 1).
Section 6 -Declarations
Please read the declarations and tick the box to confirm you accept and understand them.
Economic Resilience Grant – Phase 3 – Business Development Grant
This grant is aimed at businesses with development projects to assist with the recovery from the effects of Covid-19. Such projects include:
• Supporting the costs of your staff and operation to work on the future development of your business
• Investing in the digital capability of your business
• Investing in new processes or systems
• Investing in equipment
• Investing in the skills and capabilities of your staff
• Investing in improvements to facilities
Examples of qualifying projects have been provided: https://businesswales.gov.wales/erf-phase-3-investment-examples.
We recommend visiting the eligibility checker at https://fundchecker.businesswales.gov.wales/erfphase3 to review your eligibility for any grant funding for upcoming development projects. This grant can be worth up to £150,000.
Please do not hesitate to contact us if you wish to discuss any aspect of the above.