COVID-19 Discretionary grant scheme Round 2 - South ...
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COVID-19
Discretionary grant scheme
Round 2
Policy & appeals process
Version 4
Version 4
First published 27 July 2020
Last amended 2 September 2020
Amend notes V2 - Hairdressers, beauticians and therapists – see section 5.
V3 - home- based limited companies whose directors/employees have furloughed
themselves, as opposed to claiming Self Employment Income Support (SEIS) – see
section 4.
V4 - scheme closure date – see section 1.
*The Government guidance on which this document is based has been subject to ongoing change and, as
such, this document may also be subject to change. The District Council is not liable if any of the changes
affect the eligibility of any business for any of the COVID-19 grants.1. About the grants
In response to COVID-19 measures introduced by Government, the Chancellor announced a range of
business grants in March 2020. This first tranche of grants was made available to businesses that were
eligible for small business rate relief, rural rate relief, or the expanded retail discount scheme. Through
this programme South Derbyshire District Council has already distributed over £13.5 million in grants.
The Government recognised that this resulted in a number of specific categories of businesses with
relatively high ongoing, fixed property-related costs missing out on a grant, including businesses in
shared spaces, regular market traders, small charity properties that would meet the criteria for small
business rate relief, and bed and breakfasts that pay council tax rather than business rates.
To enable these businesses to receive support, the government awarded South Derbyshire District
Council an additional approximately £710,000 to award grants to such small businesses with ongoing
fixed property-related costs that were not eligible for one of the original COVID-19 business grants.
The Council awarded the first round of discretionary payments in July. Around £400,000 of grant funding
was awarded to some 50 businesses in the first round, which has left approximately £300,000 to be
awarded in a second round.
The types of businesses that were eligible in the first round will remain eligible in the second round, and
the eligibility criteria will also be broadened to allow additional businesses to apply. This is set out in
detail in section 2.
Unlike the original COVID-19 grants, the discretionary grants are competitive, with grants being awarded
to the applicants that best meet the criteria. Not all applicants will receive a grant even if they meet all
the criteria. Incomplete applications will not be considered. All supporting evidence must have been
received before an application will be assessed. Grants will be awarded on a first come, first served basis.
In line with government guidance, the scheme closed on Friday 28 August at 5pm and no new
applications are now being accepted, regardless of whether or not a business may have been eligible.
2. What type of businesses can apply for a discretionary grant?
In line with government guidance, businesses may be eligible for a discretionary grant if they fall into one
of the following categories1:
Type of business Description
Businesses that pay These include businesses in properties where the landlord pays the
rates within their business rates, or businesses within wider rated areas such as marinas,
rent/service charge garden centres, salons, former mill buildings and industrial estates.
Bed and These include B&Bs/self-catered accommodation that do not pay business
breakfasts/self-catering rates, but instead pay council tax. These businesses must have relevant
that pays council tax licences/registrations in place.
instead of business
rates
1
South Derbyshire District Council reserves the right to vary the terms of the scheme without notice, should it be
necessary to do so.Type of business Description
Regular market traders These include market traders that have a regular trading day(s) and fixed
premises/pitch costs. It also includes market traders that have regularly
traded at Swadlincote Market over the last year that do not have fixed
premises/pitch costs. A regular trader is one that has traded on the
majority of Swadlincote Markets during the period 28 June 2019 – 11
March 2020. It does not include occasional traders at events and fayres
etc.
Charities that claim Charities that are awarded mandatory charity rate relief but would receive
100% charity rate relief small business rate relief if they did not receive mandatory charity rate
relief (i.e. they have a premises with a rateable value of £14,999 or less).
Independent children’s Independent children’s nurseries, catteries and kennels (not part of a
nurseries, catteries and national chain) with larger single premises (RV of between £15,000 and
kennels with a rateable £51,000) or with multiple premises.
value of £15,000 -
£51,000
Self-employed Self-employed individuals with no fixed premises costs that are not eligible
individuals not eligible for the Government’s Self Employment Income Support (SEIS) scheme
for Coronavirus Self- may apply, including homeworkers/home-offices without business
Employment Income premises costs.
Support Scheme (SEIS)
With the exception of self-employed/home based businesses, businesses that are eligible for support
(regardless of whether they have applied) through the Coronavirus Job Retention Scheme, the Business
Interruption Loan Scheme, Statutory Sick Pay or Deferral of VAT, may apply for a discretionary grant (see
Appendix 1).
3. About the eligibility criteria
To be eligible for a grant, businesses must:
Have been the occupier of a property with a trading address in South Derbyshire used wholly, or
mainly, for business purposes on 11 March 2020, or were a self-employed individual working from
home but were not eligible for the Government’s Self-Employment Income Support Scheme (SEIS).
Be a small or micro business (including any linked or partner enterprises):
o A small business satisfies two or more of the following requirements: Turnover not more
than £10.2million; A balance sheet total of not more than £5.1million; A headcount of staff
of less than 50.
o A micro business satisfies two or more of the following requirements: Turnover not more
than £632,000; A balance sheet total of not more than £316,000; A headcount of staff of not
more than 10.
Be able to evidence relatively high ongoing fixed building costs including rent and (where applicable)
rates, premises insurance, utilities and commercial mortgage interest payments - businesses with a
monthly rent or equivalent of less than £100 per calendar month will not be eligible to apply - or be a
self-employed individual working from home but not eligible for the Self-Employment Income
Support Scheme (SEIS).
Have an annual rent or annual mortgage payment less than £51,000.
Be able to evidence a significant reduction in turnover (relative to the size of the business) due to the
impact of COVID-19 - businesses unable to demonstrate a reduction in turnover/income of 20% or
more will not be eligible to apply.
Be able to demonstrate the business is their sole or primary source of income (please note - income
from pensions is not included as a source of income). Market traders (with or without fixed premises costs), that regularly trade at Swadlincote Market, or
which have a premises trading address/storage facility in South Derbyshire and attend markets
elsewhere. Applications from the latter will only be considered where the business is not eligible in
the location(s) in which they attend a market.
More than one business in a shared space/business park may apply. It is expected that multiple grants
will be given out to individual businesses in shared spaces/business parks/salons.
4. Exclusions
The following businesses are not eligible to claim a grant:
Any business that has received a cash grant from any central government Covid-19 related scheme is
not eligible for a discretionary grant including the Small Business Grant Fund, the Retail, Hospitality
and Leisure Grant Fund, the Fisheries Response Fund, the Domestic Seafood Supply Scheme, the
Zoos Support Fund or the Dairy Hardship Fund – even if this relates to a different property under the
same business name. The exclusions do not include businesses that have received funding via the
Self Employment Income Support Scheme (unless you are a self-employed individual with no
premises/premises costs) or the Coronavirus Job Retention Scheme (see Appendix 1) which can also
receive grants under the Discretionary Grants Fund (see Appendix 1).
Any business that has received a cash grant or partial cash grant passed on by their landlord under
one of the Covid-19 schemes mentioned above, including in the form of a rent-free period (unless
you are a hairdresser/salon/beautician etc and pay rent within your monthly salon fee).
Businesses which have received a discretionary grant in another district.
Businesses that were not trading on 11 March 2020. This includes businesses who were aiming to
open during the COVID-19 lockdown. To be eligible a business must have been open and trading on
11 March 2020.
Companies that are in administration, are insolvent or where a striking-off notice has been made are
not eligible for funding.
Businesses renting premises from companies that are controlled by some or all of the same
individuals will not normally be eligible, particularly where one of the businesses has already
received a Covid grant.
Empty business units where a business is not trading.
Care homes that do not pay business rates.
B&Bs/self-catered accommodation that do not have the appropriate permissions/documentation in
place, such as food safety rating and (if appropriate) planning permission, building regulation
consent, alcohol licences, fire risk assessment, gas safety certificate and public liability insurance.
Land-based business operating from agricultural property.
Landlords, property developers, doctors, banks, building societies, cashpoints, bureaux de change,
short-term loan providers and post office sorting offices.
Mobile and festival catering outlets without fixed building costs and not paying a regular rent e.g.
those attending festivals and events.
Home-based offices/workers that do not pay separate premises costs unless they were ineligible
for the Self Employment Income Support scheme (SEIS).
Directors/employees of home-based limited companies that do not pay separate premises costs
and who have not benefitted from the Self Employment Income Support Scheme (SEIS), but have
furloughed themselves/key officers.
Businesses that pay business rates but were not able to claim a grant under the original Covid-19
business grant scheme – see section 5.5. About premises costs for hairdressers, beauticians and
therapists
It is recognised hairdressers/beauticians/therapists have had to invest in significant PPE in order to
reopen, and furthermore are unable to service the same number of clients post COVID-19 as they did
prior to the shutdown. As such, the District Council acknowledges that such businesses will take longer to
recover previous takings/income levels. As such, where hairdressers/beauticians/therapists do not have
fixed premises costs (for example they pay a percentage of their takings), the actual financial amount
they have paid to the salon owner/manager over the past six months will be considered their premises
costs for the purposes of the grant.
Such hairdressers/beauticians/therapists will be required to supply evidence of the six month payments
(September 2019 – February 2020) they have made to their salon owner/manager. A monthly average of
these payments will then be calculated and this will be considered their premises cost. Where
hairdressers/beauticians/therapists pay for products within their payment to their salon
owner/manager, this will need to be identified and will be deducted from the total cost.
Should their premises costs be below the minimum premises cost as set out in this policy (see section 3),
then they will be considered ineligible for a grant. Should the premises cost be above the minimum
premises costs set out in the policy, their application will be considered in line with the policy.
6. About businesses not in the ratings list
Where the council considers the ratings list to be inaccurate, and that a business should be listed, we will
report it to the Valuation Office Agency (VOA). In these circumstances:
Where the council is confident the business premises will be listed by the VOA, and that the
business/premises will be eligible for small business rate relief, rural rate relief or expanded retail
discount, the Council may award a COVID-19 grant in advance of the VOA’s decision in order to
safeguard the economy and ensure the ongoing survival of the business during the COVID-19
lockdown and recovery.
This will be at the discretion of the council’s Strategic Director for Corporate Resources, Finance
& Corporate Services. The maximum grant the Council will award in these circumstances is
£10,000. If a retail premises is later rated by the VOA, and its rateable value is determined to be
higher than £15,000, the Council may top up the grant award to £25,000, provided the retail
grant scheme closure date has not passed/the funds have not been exhausted.
If the closure date has passed then no further top up payments will be made and the local
authority will bear no responsibility for this.
Where the council is not confident the business premises will be listed by the VOA, we may
encourage such businesses to apply via the Council’s COVID-19 discretionary scheme (if the fund is
not exhausted).
Should the business premises be awarded a discretionary grant, and should it be rated later by
the VOA, the council may top up the difference between the discretionary grant it has received
and the non-discretionary grant it would have received, had it been rated when it first applied,
provided the non-discretionary grant scheme closure date has not passed/the funds have not
been exhausted.
If the closure date has passed then no further top up payments will be made and the local
authority will bear no responsibility for this.
Should a business be awarded a non-discretionary grant, in advance of the VOA’s decision, and should it
later not be rated, the grant will be considered to have been awarded under the discretionary scheme.7. Will there be a further round? Whilst there is no application deadline, as soon as applications near the total amount of money available to give out in grants, the application form will be taken offline and no more applications will be accepted. If after processing the applications received, further funding is still available, the online form/application process may be opened up again, until the funding pot has been fully distributed. The government has announced beyond this grant funding round that no further funding will be made available and all COVID-19 related funding streams distributed by the district council will end on Friday 28 August 2020. 8. About the deadline date for applications The second round of applications will open for applications on Monday 27 July 2020. The online form will be suspended periodically to allow submitted grant applications to be processed. This aims to avoid businesses spending time making applications if there are no grants left to award. Complete applications will be assessed, and grants awarded, on a first come, first served basis. The processing of each complete application should take approximately three weeks from the date of submission. Where an applicant does not provide all the necessary evidence as stated on the online form, their application will not be considered valid and will not be assessed until all the evidence has been provided. If the evidence is provided after the grant pot has been exhausted, the applicant will not be awarded a grant, even if they could have been eligible. Where additional evidence (more than detailed on the online form) is requested, this will not affect an applicant’s position in processing order. Once the funding is exhausted no further grants will be awarded. 9. The application process Apply online at www.southderbyshire.gov.uk/discretionarybusinessgrants Applicants will be required to provide information about their business/charity including business bank details, copies of accounts, bank statements, payroll, tax returns, photo identification (eg. passport/drivers’ licence), insurance, your Companies House, Charity Registration, HMRC and VAT numbers and copies of your lease/rental agreement (if applicable) and evidence of payments and evidence that your business/charity has been impacted by the COVID-19 shutdown. Bank statements must be provided for the period January – June 2020 and clearly show the name of the business, together with the account number and sort code. When using the online form, an item of evidence only needs to be uploaded once, even if being used as evidence to answer several questions. Please note that without key items of evidence such as bank statements and photo identification, we will not be able to consider your application. Partial or incomplete applications will not be considered, and the Council will not chase for supporting evidence. If you do not upload all the evidence required, your claim will not be considered valid and will not be processed and applications will lose their place in the processing queue until all evidence is received.
If you can’t upload evidence online, you can drop it off at the council buildings (via the post box) at Civic
Offices, Civic Way, Swadlincote, Derbyshire, DE11 0AH.
Businesses should quote their application reference on the envelope, so it can be matched up to their
case. We also recommend businesses do not supply original documents as we cannot guarantee we will
be able to return them due to the volume of applications we may receive. We recommend you do this
on the same day as you submit your application online, otherwise your application will be considered
not valid until the evidence is received.
If you will struggle to drop off evidence (due to access issues) please fill in the online form and then
contact our team on 01283 595795 to explain your circumstances.
10. About the assessment criteria
Applications will be assessed against criteria that have been developed in consultation with other
councils in Derbyshire. Each application will be given a score against these criteria, and this will
determine whether the business receives a grant, and the size of the grant. The key criteria are shown
below – applicants will be expected to provide evidence in each case:
Factors Question Answer
Number of Business size (headcount 0
employees excluding owner/proprietor) 1–4
5 – 10
11 - 49
Levels of ongoing Annual business premises Less than £5,000
fixed costs costs (e.g. rent/commercial £5,001 - £15,000
mortgage, premises More than £15,000
insurance, utilities)
Trading impact Impact of COVID-19 on Open throughout/full trading
trading/activity Partial trading/recently opened/restricted to
trading online
Closed throughout/no trading
Financial impact Impact on turnover/income 50%+ down
49% - 31% down
30% - 20% down
Less than 20% down
Is this your sole source of Yes
income? 50% or more of income
49% - 33%
33% or less
11. How long will the grants take to process?
The processing of each complete application should take approximately three weeks from the date of
submission. This is also due to the level of due diligence we will need to undertake to assess applications
and to undertake anti-fraud checks.
As such, it is hoped that some payments may start to be made on, or after, 17 August 2020, but the
Council cannot guarantee this.
Any applicant found to not be eligible for the grant will also be notified on or after 17 August 2020.12. About the grants The discretionary grant funding pot is limited. There is no guarantee that all applicants will receive funding, even if they have suffered losses due to COVID-19. In the second round grants will be awarded on a first come, first served basis. South Derbyshire District Council can award grants of £25,000, £10,000 and any amount under £10,000. It has complete discretion over the grant sums it awards below £10,000. Grants of £10,000 and £25,000 will only be awarded in exceptional circumstances. As such, it is expected that the vast majority of grant awards will be below the £10,000 grant level. Some grants will be significantly below this figure, and it is envisaged grants could range from £500 upwards. Eligible businesses without fixed business premises costs (eg. homeworkers and casual market traders) will receive a small fixed grant amount. The level awarded will be dependent on the number of applications received. Whilst the application process asks questions about the losses a business has experienced as a result of COVID-19, it is unlikely (and there is no guarantee) that the grant level awarded will cover the losses businesses have experienced, but will be a contribution towards those losses only. Other sources or forms of income will also be taking into consideration. The exact amount a business will receive will also depend on the number of applications the Council receives. There will be no appeal process for businesses/charities in relation to the grant amount they are awarded. The grants do not need to be paid back and are designed to help businesses cope with the impact of COVID-19. 13. About State Aid Businesses can only accept a grant if in receiving it, the total State Aid the business (including any linked enterprises) will have received in the past three financial years will not exceed €200,000. State Aid includes but is not limited to Supporting Small Business Relief (this is not the same as Small Business Relief), Retail Relief, Supporting Pub Relief, shop front grants and any other grants issued to you stating they are given under State Aid. Find out more at www.gov.uk/state-aid Any business in receipt of State Aid must submit a signed State Aid Declaration letter and their grant claim will not be considered processed until the letter is provided. The letter is available online at: www.southderbyshire.gov.uk/businessgrants. The Government has also confirmed that aid may be granted to undertakings that were not in difficulty (within the meaning of Article 2(18) of the General Block Exemption Regulation) on 31 December 2019, but that faced difficulties or entered in difficulty thereafter as a result of the COVID-19 outbreak. This aid is in addition to any aid that you may have received under the De Minimis regulation allowing aid of up to €200,000 to any one organisation over a three fiscal year period (i.e. your current fiscal year and previous two fiscal years), and any other approved aid you have received under other State Aid rules, such as aid granted under the General Block Exemption Regulation. Companies who have received State Aid will be asked to confirm that their undertaking was not in difficulty (within the meaning of Article 2(18) of the General Block Exemption Regulation) on 31 December 2019.
14. About processing and fraud checks Businesses will be asked to declare that the information they have provided is true and accurate when they apply for a grant. All grant claims will be processed through a series of checks, including checks against our business rates database and checks using the Government Spotlight anti-fraud software. The Council reserves the right to verify/put on hold any claim to enable detailed checks to be carried out. The District Council also reserves the right to undertake spot checks on businesses and their activities after the award of a grant, or in the light of new information it receives. Any suspected fraud cases will be investigated by our partners Derby City Council Anti-Fraud team. Any business caught falsifying their records to gain a grant will face prosecution and any funding issued will be subject to claw back. Where an applicant makes declarations as to the circumstances of a business, these will be taken in good faith, however should a grant be awarded and these subsequently prove to be misleading or inaccurate, the District Council reserves the right to take legal action and to claw back the grant. To find out how we will record, process and store your data, please read our data protection statement at www.southderbyshire.gov.uk/businessdata 15. About payment of the grant Businesses that are eligible for a grant(s) will be paid directly into their bank accounts. No paperwork will be issued with the grant. If you require grant payment documentation, please email business.grants@southderbyshire.gov.uk. Please note the documentation may take some time to provide as we process other grants. Please note, the grant is subject to tax. 16. Non-eligible businesses Businesses that complete an application but are not eligible will receive a letter/email to their business premises or email address to notify them that their claim has not been successful. 17. Declining the grant Any business that will exceed their State Aid de Minimis level by receiving the grant must declare it and not accept the grant. This is the responsibility of the business.
18. Appeals process The Council accepts no responsibility for any business that does not receive a grant for whatever reason and there is no appeals process in relation to grant awards/non-awards or grant levels. Even if applicants are eligible and apply/provide all evidence, there is no guarantee they will receive a grant and applicants will have no reason for recourse should they not be awarded a grant. Anyone who does not apply, regardless of whether they could have been eligible, will have no claim to a grant/and have reason for recourse. 19. Any questions or need help? If you have any questions about the discretionary grant scheme, please email business.grants@southderbyshire.gov.uk If you need any help filling in the online application form, or have any additional needs, including translation requirements or if you are struggling to get online, please contact our customer services team on 01283 595795, Monday, Tuesday and Thursday 8.45am – 5pm, Wednesday 10am – 5pm and Friday 8.45am – 4.30pm. 20. Changes to the document The Government guidance on which this document is based has been subject to ongoing change and, as such, this document may also be subject to change. The District Council is not liable if any of the changes affect the eligibility of any business for any of the COVID-19 grants. ENDS
Appendix 1
About Coronavirus Self-Employment Income Support
Business owners who are eligible for Coronavirus Self-Employment Income Support Scheme may also be
eligible for a discretionary grant (except for home-based businesses/businesses with no premises costs).
Businesses can claim Self-Employment Income Support if their business was adversely affected by
coronavirus and they are self-employed or a member of a partnership and their business:
traded in the tax year 2018 to 2019 and you submitted your Self-Assessment tax return on or
before 23 April 2020 for that year
traded in the tax year 2019 to 2020
intends to continue to trade in the tax year 2020 to 2021
carries out a trade which has been adversely affected by coronavirus
To find out more about how to apply for the Coronavirus Self-Employment Income Support Scheme,
visit: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-
income-support-scheme
About the Coronavirus Job Retention Scheme
Business owners who cannot maintain their current workforce because their operations have been
severely affected by coronavirus (COVID-19), can furlough employees and apply for a grant that covers
part of their usual monthly wage costs. Please note that the Coronavirus Job Retention Scheme will
close to new applicants from 30 June.
From July, employers currently using the scheme will have more flexibility to bring their furloughed
employees back to work part time whilst still receiving support from the scheme. This is expected to run
until the end of October.
From August, the level of Government grant provided will be tapered and employers will be asked to pay
an increasing percentage of the costs of their furloughed staff.
To find out more about how to apply for the Coronavirus Job Retention Scheme, visit:
https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-schemeYou can also read
