Additional Restrictions Grant - Spring/Summer 2021 and ARG Recovery Grant - Guidance for Applicants June 2021
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Additional Restrictions
Grant – Spring/Summer
2021 and ARG Recovery
Grant
Guidance for Applicants
June 2021
www.gosport.gov.uk
Contents 3 1. Fund Overview 4 2. eligibility criteria and supporting information 8 3. Application, Decision and Funding Process
1. Fund Overview
In response to the introduction of national and local Who can access this fund?
restrictions effective from 5 November 2020 to
Although this is described as a discretionary
help manage the coronavirus (Covid-19) outbreak,
fund, government guidance is that these grants
the government announced there would be
are to support:
additional funding support for local businesses that
are severely affected by these restrictions. • Businesses that are not business ratepayers and
have been required to close by law.
Funding has been made available under the
Additional Restrictions Grants fund (ARG) for local • Businesses that are not business ratepayers and
businesses that are not eligible to receive support whilst not required to close by law have been
through the LRSG Closed Addendum, Closed, Open severely impacted e.g. businesses that supply the
and Sector funds but that have either been required
retail, hospitality, leisure sectors, or businesses in
to close by law or have been severely impacted by
the range of restrictions imposed by government the events sector. However businesses from other
since 5 November 2020. sectors can also apply if they meet the eligibility
criteria.
The ARG scheme is designed to help support
businesses with their unavoidable fixed costs. This • Businesses that are business ratepayers and are
scheme is not designed to be a substitute for not eligible for one of the Business rate payer
wages, as support for wage costs can be gained
grant funds but have been severely impacted e.g.
through the Coronavirus Job Retention Scheme
(CJRS) and the Self-Employment Income Support businesses that supply the retail, hospitality,
Scheme (SEISS). ARG grants will be awarded to leisure sectors, or businesses in the events sector.
eligible businesses based on their level of fixed However businesses from other sectors can also
business costs and evidenced drop in sales
income. apply if they meet the eligibility criteria.
Severely impacted is defined as meeting the
All local authorities have received funding
following criteria:
allocations to support businesses that experience
disruption from 5 November 2020 to 31 March • A reduction in income of over 33 per cent for
2022 in line with government guidance during these the period 1 April to 31 May 2021 compared
timescales. to the same period in 2019 i.e. pre-pandemic
• A requirement to continue paying fixed costs
Gosport Borough Council has previously run that are unavoidable
application windows to provide support for the
following restriction periods;
• National Lockdown: 5 November 2020 to
1 December 2020 All applicants will have to supply clear evidence
that they have been severely impacted as set out
• Tier 2: 2 December 2020 to 18 December 2020 above and if you have also been unable to trade
• Tier 3/4: 19 December 2020 to 4 January 2021 online this will further support your case.
• National Lockdown: 5 January 2021 to 31
March 2021
This new one-off application window is to offer
further funding to help support businesses for the
period from 1 April to 30 September 2021. In
addition to a continuation of its existing Additional
Restrictions Grant scheme the funding on offer
also includes a new supplementary ARG Recovery
Grant for eligible businesses.
Additional Restrictions Grant – Spring Summer 2021 • Guidance for Applicants • 3
In summary the key features of the scheme are;
• To help businesses to recover, grow and
2. Eligibility
add resilience
• Mainly to support non business rate payers
as they are not eligible for similar support
Criteria and
schemes as business rate payers. However
business rate payers can still apply supporting
• Open to businesses that were severely
impacted (open or closed) during the period
of national restrictions from 1 April onwards
information
• Designed to cover unavoidable fixed costs
only (as employees costs are reimbursed
through the Government’s furlough and National eligibility criteria
Self-Employed Income Support Scheme) To be eligible businesses must meet the following
criteria;
• Grants will take account of how severely
affected a business is, starting at a 33% • Businesses must not be in administration or be
reduction in turnover through to full closure insolvent or where a striking-off notice has been
made.
• Grant awards will cover a wide range of
• Businesses must not have already received grant
unavoidable fixed costs at a rate
payments that equal the maximum levels under the
proportionately higher than the loss of
Subsidy Control Framework.
turnover
• Businesses should not be awarded funding as a
wage support mechanism, for capital projects that
do not provide direct business support, or to fund
projects whereby Local Authorities are the
recipients.
Gosport Borough Council criteria
This grant fund will be used to support and provide
some recompense for local businesses that have
either had to close by law or have been severely
impacted due to being in the supply chain of
businesses forced to close by law as a direct result
of the restrictions imposed over the period from 1
April to date.
The scheme is designed to help support
businesses with their unavoidable fixed costs with
an additional strand to help businesses recover
from the pandemic. This scheme is not designed to
be a substitute for wages as support for wage costs
can be gained through the Coronavirus Job
Retention Scheme (CJRS) and the Self-Employment
Income Support Scheme (SEISS).In addition to the
national eligibility criteria above, businesses will also
need to meet all of the following criteria;
• The business will need to demonstrate how the
restrictions in place since 1 April have severely
impacted them and will have to provide
evidence of this
4 • Additional Restrictions Grant – Spring Summer 2021 • Guidance for Applicants
• The business must have been trading 1 April 2021 Additional Restrictions Grant – Spring/Summer
(examples of trading are staff on furlough, 2021
engaged in business activity and taking measures For businesses that have been required to close by
to prepare for re-opening). law or were severely affected by the restrictions in
• The business will need to have a trading address place from 1 April 2021 onwards, a one-off grant
within Gosport Borough Council local authority will be awarded under this scheme to again help
boundary businesses to cover their unavoidable fixed costs.
In addition the grant is also intended to support the
• The business must not have applied for a grant for
business going forward to aid local economic
the same scheme from another local authority
recovery.
• The business will need to incur fixed costs that
include at least one of the following: In recognition of this, the grant amount will be a
multiple of 6 times the level of monthly eligible fixed
◦ rent ◦ council tax costs according to the scale set out below which
◦ business rates ◦ hire purchase relates to the extent of the reduction in income.
◦ storage costs ◦ lease costs Therefore a one-off grant of between £2,400 and
◦ mooring fees ◦ license costs £18,000 will be awarded to eligible businesses.
◦ mortgage costs ◦ business insurance
◦ use of home as office
Reduction in income will be based on income (total
sales/revenue specific to the business only) for the
Other costs will not be deemed as eligible.
period 1 April 2021 to 31 May 2021 compared to
Evidence of the business incurring these costs will income (total sales/revenue specific to the business
need to be provided. only) of the same period in 2019 i.e. pre-pandemic.
Businesses will need to notify the council if they no Where the business had not commenced trading in
longer meet the eligibility criteria for an Additional 2019 then comparison will be made to income (total
Restrictions Grant (for example, if they become sales/revenue specific to the business only)
insolvent). achieved in September and October 2020.
Grants available Eligible fixed monthly costs for the purpose of this
There are two one-off funding opportunities grant only include:
available during this application window:
◦ rent ◦ council tax
◦ rates ◦ hire purchase
• Additional Restrictions Grant – Spring/Summer
◦ storage costs ◦ lease costs
2021 of between £2,400 and £18,000; and
◦ mooring fees ◦ license costs
• ARG Recovery Grant of between £1,000 and ◦ mortgage costs ◦ business insurance
£5,000 ◦ use of home as office (if applicable)
Evidence of the charge to the business for these
costs e.g. invoice or lease agreement and shown in
the profit and loss accounts or self-assessment
return must be provided. Please note that any
other costs paid by the business will not be
deemed as eligible expenditure.
Reduction in 33-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%
income %
Grant level % based
on eligible fixed 60% 75% 90% 105% 120% 135% 150%
business costs
As an example: A business incurs monthly rent of £600, had sales income in the period 1 April to
31 May 2021 of £2,500 and sales income in the period 1 April to 31 May 2019 of £10,000.
Therefore they have suffered a 75% decline in income and are eligible for an Additional
Restrictions Grant – Spring/Summer 2021 of £4,320 ((120% of £600) x 6)
Additional Restrictions Grant – Spring Summer 2021 • Guidance for Applicants • 5ARG Recovery Grant You should exclude the VAT element from the
amount of grant you are requesting unless you are
In additional to the Additional Restrictions Grant –
unable to reclaim your own VAT as a result of not
Spring/Summer 2021 eligible applicants are also
being VAT registered.
being given the opportunity to apply for
supplementary funding between £1,000 and £5,000 The grant will be capped at the amount applied for
to support their business to recover, grow and add however if the invoices supplied are for a lower
resilience. expenditure amount then the council will seek to
recover the difference.
Therefore this additional grant funding is available
Exceptional Grants
for the following categories of non-capital
expenditure: The council may award a higher level of grant in
exceptional cases where an eligible business can
• Professional services including clearly demonstrate that their business needs
o Strategic review of business models/ greater support, is in a critical sector responding
recovery plans to the pandemic and that it delivers services
o Business planning, IT consultancy, crucial to the economy of Gosport. It is expected
finance readiness that exceptional grants would only be paid out in
o HR, financial, and legal advice very specific circumstances.
(excluding statutory processes fees)
o Developing or revising marketing/digital
strategies to reach new markets Market Traders
o Marketing and Advertising campaign Regular Market Traders
fees To be eligible, regular market traders will also have
o Legal and environmental health
been required to close by law or demonstrate that
compliance fees as a direct result of
they have been severely impacted by the
the Covid 19 compliance
restrictions from 1 April onwards.
o Employee engagement, welfare and
wellbeing
• IT Training To prove that they are regular traders they must
provide a copy of their licence in their online
An explanation as to how this expenditure will application, including the number of days they trade
specifically help the business recover, grow and add in Gosport for each pitch held. Applicants must have
resilience will be required as part of the application been trading on a weekly basis on a market in
for this funding and this will be assessed Gosport since at least September 2020.
accordingly.
Successful grant applications will be paid in
advance of incurring expenditure but businesses will
be required to provide evidence of expenditure in
the form of an invoice addressed to the business
and proof of payment by the business e.g. Bank
payment evidence by 30 September 2021 at the
very latest.
Evidence will need to be provided to COVID-
DiscretionaryBusinessGrants@gosport.gov.uk
together with an explanation as to how the grant
funding has supported the business as lockdown
restrictions are lifted.
If evidence of expenditure and payment is not
provided by 30 September 2021 then the council
will seek to recover this additional grant payment.
Only expenditure incurred between 1st April 2021
and 31 August 2021 will be deemed eligible.
6 • Additional Restrictions Grant – Spring Summer 2021 • Guidance for ApplicantsSupporting documentation Timescales
In order for your application to be assessed you Businesses must complete an application form by
will be required to provide the following supporting 23.59 on Monday 19th July 2021. Applications will
documents when submitting an application form: not be accepted after this time.
• Copy of the businesses latest filed financial
The funding is limited and when it has been fully
statements or self-assessment tax return
allocated there will be no additional grants paid. All
showing entries for the business where
applicable applications will be assessed, specifically in respect
• Management accounts / Summary of monthly of the evidenced fixed costs and lost income for the
income and expenditure for the period from the period 1 April to 31 May 2021 and this will need to be
last filed financial statements / self-assessment validated against information provided as part of the
up to date of application application. All applicants will be contacted to be
• Evidence to support sales income for the informed if a grant has been awarded or declined as
period 1 April 2021 to 31 May 2021 and the soon as possible after applications have been
comparative period for 2019 assessed.
• Evidence of the fixed costs charged to the
business (e.g. invoice or agreement with
landlord) and must be shown in the expenditure
records of the business
• Latest business bank statement
Additional Restrictions Grant – Spring Summer 2021 • Guidance for Applicants • 73. Application, Decision and Funding
Process
Fund Application application to be assessed. Please ensure you
regularly check your emails including items that may
Please apply using the online form on this web page:
have been sent to your spam / junk inbox.
www.gosport.gov.uk/businessrates
The decision of the assessors is final.
There is no provision to appeal. If your application
Once received, applications will be assessed based
fund meets the criteria and is awarded funding, you
on the criteria set out above.
will be contacted to confirm the amount.
You must attach evidence to substantiate the
information in your application form. Failing to do so Release of funds
will either weaken your application and / or reduce
All payments will be made via BACS as soon as is
the chance of receiving a grant or mean your
possible but it is expected that the volume of
application is ineligible.
applications will be very high and it will take some
time to carry out all of the assessments.
As part of the assessment, you may be asked for
additional information to support your application. The business must provide bank details for payment,
This scheme is funded directly by government and including a bank statement.
therefore there is a requirement for proper and
proportionate checks to be undertaken in the Post Award Monitoring
assessment of all applications. This scheme is funded directly by government and
If you are required to provide additional information a requirement of the funding is to collect information
then we will request this by email using the from businesses receiving these grant payments,
information provided in your application and require and we will be expected to account for how the
a response within five working days in order for your funding has been spent.
8 • Additional Restrictions Grant – Spring Summer 2021 • Guidance for ApplicantsWhere a business is awarded the ARG Recovery economy and supports growth and other
Grant element there will be a requirement to provide government policy objectives and it can be given to
evidence of expenditure and a report to explain how support a wide variety of activities including research
this funding was used to help the business recover, and development, environmental protection and aid
grow and add resilience. for small to medium-sized businesses. The rules
permit financial aid where it is necessary to deliver
Grant recipients should also be advised that they
growth and other important objectives.
may be contacted for research purposes, and that
their data will be shared with the Department for The award of any financial sum paid to you must
Business, Energy and Industrial Strategy for comply with any subsidy control legislation and/or
research and evaluation purposes. state aid legislation (if applicable) and government
guidance.
Tax If you have not received payments from any other
Grant income received by a business is taxable public body, it is unlikely that you will be in breach of
therefore funding paid under the Local Authority any laws relating to the financial aid that is provided
Discretionary Grants Fund will be subject to tax. Only to you by the council. If you have received payment
businesses which make an overall profit once grant from any other public body, please notify the council
income is included will be subject to tax. immediately as it could have an impact of the validity
of the payment that is being made to you.
Grant Payment
Please ensure that the application that you submit
Both existing and previous UK law and Subsidy for financial aid from the council is accurate and
Control places restrictions on when a public body truthful to the best of your knowledge. A failure to
can provide financial aid to commercial entities. This provide accurate and truthful information will entitle
grant is being made under a number of schemes the council to recover from you any payments that
that have been established by government to are made. The council reserves the right to issue
support businesses that have been impacted by the court proceedings to recover any payment made to
Covid-19 pandemic. you where it is determined that the payment was
Financial aid provided by a public body is any unlawful as a result of your failure to provide accurate
‘advantage’ granted by a public body through state and truthful information in your application.
resources and is governed by Subsidy Control
Legislation (formerly State Aid law) and any other Fraud
guidance issued by government The council will not accept deliberate manipulation
• The meaning of ‘aid’ is broad because an and fraud. Any business caught falsifying their
advantage can take many forms. Financial aid can records to gain additional grant money will face
constitute the following grants, including Business prosecution. Any funding issued will be subject to
Support Grants. claw back, as will any grants paid in error.
• loans All applicants’ information will be shared with the
government grants management team to enable any
• tax breaks, including enhanced capital allowances fraud to be identified. All businesses will be required
• the use or sale of a state asset for free or at less to confirm acceptance of this by ticking the box on
than market price the application form.
Financial aid is permitted where it is beneficial to the
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