On Friday 1 May the government announced a new Discretionary Grant which was also referred to as the Top Up Grant. Salford City Council was allocated £2.2 million to award to local eligible businesses and trading charities. This scheme is primarily aimed at small and micro businesses with ongoing fixed property costs that have suffered a significant fall in income due to COVID-19.
Round 1 of the Salford scheme closed on 9 June and we awarded £1.45m in grant funding to more than 230 businesses and charities. With the remaining balance of £0.75m we’re now reopening for a second round of the scheme for further applications.
Round 2 of the Business Discretionary Grant Fund
The second and final round of the Discretionary Grant Fund is now open for applications, so this is your last chance to apply for a grant.
There is approximately £750,000 remaining in the grant pot for local eligible businesses and trading charities.
For this final round we have extended the eligibility criteria which means that:
- A broader range of local charities can now apply as there is no upper limit on the rateable value of the property to be claimed for.
- A large number of childcare settings can apply provided they are Ofsted registered.
- Additional businesses from the hard-hit retail, hospitality and leisure sector can apply.
- More small to medium sized businesses from any sector can apply.
- Any round 1 eligible businesses and charities that missed the round 1 deadline can also apply.
The amount of grant you receive will be equivalent to your annual fixed property costs such as rent and mortgage payments. Any business paying an all-inclusive rent to their landlord which may include other property costs such rates, insurance and utility costs, will be assessed on their all-inclusive rent payments.
The council wants to maximise the number of grant beneficiaries. However we expect that demand for the grants will be high, potentially requiring more money than has been made available. We therefore plan to cap grants at £10,000 and expect the majority of awards will be under £10,000. Larger grant requests are capped by the government at £25,000 and will only be considered in exceptional circumstances. In such cases we would consider the individual merits of the case, the size of the business and number of employees, as well as the impact of the pandemic on the business.
If the fund is oversubscribed with the applications received, the city council reserves the right to amend grant levels on a pro-rata basis as a way of dealing with this situation.
For businesses that have not been allowed to open or provide services that are not permitted due to social distancing rules, and have not been able to switch to providing online services, the level of income lost will be more significant to that of a business still able to operate albeit at a reduced level. This will be considered when awarding grants as we want to ensure the grant funds reach those businesses that have been significantly impacted.
For us to consider your application your business must be in one of the following categories:
- Multi-occupancy premises - small businesses in shared offices or other flexible workspaces without an individual business rates assessment. Examples include units in industrial parks, science parks and incubators, as well as shared shop units with a single access, where the business pays an all-inclusive rent.
- Charities – charity properties in receipt of Charitable Business Rates Relief which would otherwise have been eligible for Small Business Rates Relief or Rural Relief.
- Regular market traders with fixed building costs such as rent, who do not have their own business rates assessment (restricted to Salford’s permanent markets only)
- Bed and breakfasts - which pay Council Tax instead of business rates.
New criteria for round 2
For us to consider your application your business must be in one of the following categories:
- Charities occupying a property in receipt of Charitable Business Rates Relief with only one business rates assessment and being ineligible for Small Business Rates Relief or Rural Relief. No rateable value limit.
- Childcare providers - Non-public sector Ofsted registered providers of childcare such as nurseries and afterschool clubs that fall outside of the Business Rates Small Business Grant scheme. Must occupy only one property with a rateable value between £15,000 and £51,000.
- Retail, hospitality and leisure businesses that fall outside of the Business Rates Retail Grant scheme. Must occupy only one property with a rateable value between £51,000 and £100,000.
- Small to medium enterprises that fall outside of the Business Rates Small Business Grant scheme. Must occupy only one property with a rateable value between £15,000 and £30,000.
In addition, the Government has stipulated that:
- Your business must have been trading on 11 March 2020.
- Your business is a small or micro business with a turnover less than £10.2 million, a balance sheet total less than £5.1 million and less than 50 employees.
- You must be able to show a significant drop in income since March 2020 due to COVID-19.
- You must not be able to access the Small Business Rates Grant; Retail, Hospitality and Leisure Grant.
- Your business must not be in administration, insolvent or have a striking-off notice in place.
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