Guidance for applications to Amber Valley Borough Council for Local Restrictions Support Grant (Closed) for Tier 4 from 31st December 2020 and ...

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Guidance for applications to Amber Valley Borough Council for Local
Restrictions Support Grant (Closed) for Tier 4 from 31st December 2020 and
National Lockdown Restrictions from 5th January 2021

Introduction
Grant funding will be available retrospectively for businesses in Amber Valley from 31
December and from 5th January 2021 when businesses were required to close as a result of
regulations made under the Public Health (Control of Disease) Act.
1.This guidance is intended to support Amber Valley based businesses applying to Amber
Valley Borough Council for a grant from the Local Restrictions Support Grant (LRS)
announced by the Government on 30 December 2020 and 4th January 2021
2. This guidance sets out the criteria under which businesses will qualify to make an
application to the LRS fund and is aligned with the Government guidance issued on 22
December 2020 and 4th January 2021
3. This fund is aimed at businesses that pay business rates on their premises and have
received a Non Domestic Rates demand that were open as usual and providing in-person
services to customers from their business premises and then required to close for a
consecutive period of no less than 14 days as a result of regulations made under the Public
Health (Control of Disease) Act that were not required to close but have been severely
affected.
4. The government guidance issued on 22 December 2020 and 4th January 2021 gives the
council discretion over the grant scheme, and its decisions regarding the scheme will be
final.
5. Under the guidance issued to the council by the government, it has been determined that
the businesses to be prioritised for access to the funding are:
Businesses required to close that pay business rates.
   •   all non-essential retail, including, but not limited to clothing and electronics stores,
       vehicle showrooms, travel agents, betting shops, auction houses, tailors, car washes,
       tobacco and vape shops.
   •   indoor and outdoor leisure facilities such as bowling alleys, leisure centres and gyms,
       sports facilities including swimming pools, golf courses and driving ranges, dance
       studios, stables and riding centres, soft play facilities, climbing walls and climbing
       centres, archery and shooting ranges, water and theme parks,
•   entertainment venues such as theatres, concert halls, cinemas, museums and
       galleries, casinos, adult gaming centres and arcades, bingo halls, bowling alleys,
       concert halls, zoos and other animal attractions, botanical gardens;
   •   personal care facilities such as hair, beauty and nail salons, tattoo parlours, spas,
       massage parlours, body and skin piercing services, nonmedical acupuncture, and
       tanning salons. A full list of the business closures will be published and set out in law.
   •   Hotels, hostels and other accommodation should only open for those who have to
       travel for work purposes and for a limited number of other exemptions which will be
       set out in law.
   •   Parish councils which meet the scheme criteria (the precepting authority exclusion
       does not apply to this fund).
Grant funding will be provided based on the Rateable Value of the premises:

    Rateable value of premises                        Grant payment per 14 days
    £15,000 or under                                                  £667
    £15,001 to £50,999                                                £1000
    £51,000 or over                                                   £1500

               Closed Businesses Lockdown Payment

A one-off Closed Businesses Lockdown Payment is to be paid alongside the Local
Restrictions Tier 4 & National Lock Down Grant payments
If your business is one of the listed business types mandated to close you will be eligible for
a further one-off Closed Businesses Lockdown Payment (Note your business must be one of
the listed business that has been Mandated to close to receive this grant) This one-off
Closed Businesses Lockdown Payment (to be paid at the same time as the Tier 4 (5 days) and
the National Lockdown grants) can be applied for along with the other two grants on one
application.

   •   The following funding thresholds apply to the Closed Businesses Lockdown
       Payment:
       Businesses occupying hereditaments appearing on the local rating list with a rateable
       value of exactly £15,000 or under on the date of the commencement of the
       widespread national restrictions will receive a payment of £4,000.
        Businesses occupying hereditaments appearing on the local rating list with a
       rateable value over £15,000 and less than £51,000 on the date of the
       commencement of the widespread national restrictions will receive a payment of
       £6,000.
Businesses occupying hereditaments appearing on the local rating list with a rateable
        value of exactly £51,000 or above on the commencement date of the widespread
        national restrictions, will receive £9,000.

Eligibility
6. Who can apply for a grant under this scheme?
    •   Businesses, that were in occupation of a property according to our records with a
        trading address in Amber Valley on 4th November 2020 and were required to close
        are eligible. (Note businesses which trade from a domestic property will not be
        included in this scheme).
    •   Businesses must have been trading prior to the first full day of National or LCAL 3
        restrictions to be eligible to receive a grant support and they shown as the ratepayer
        on Amber Valley’s rating list.
    •   Businesses that were required to close because of the formal publication of local
        restrictions guidance by central Government are eligible.
    •   Businesses that have been unable to provide their usual in-person customer service
        from their premises, but are providing an alternative service instead (i.e. businesses
        that operate primarily as an in-person venue, but which have been forced to close
        those services and provide a takeaway-only service instead) are eligible
    •   Hotel, B&B or other accommodation only open to those who have to travel for work
        purposes and for a limited number of other exemptions which will be set out in law
        are eligible.
    •   Businesses which primarily supply the retail, hospitality and leisure sectors or
        businesses in the events sector are eligible
    •   Businesses that have chosen to close are not eligible.
    •   Businesses that are not required to close but have been severely affected by the
        mandated closure of their main business customers from the 31 December2020 are
        eligible to claim
    •   Businesses which are eligible for or have received cash grants from the Additional
        Restrictions Grant (ARG) scheme are not eligible for funding from the LRSG (Closed).
    •   Businesses that were in administration, are insolvent or where a striking-off notice
        has been made are not eligible for funding under this scheme.
The Rateable Value as at the 4th November 2020 will determine the grant amount. Any
changes to this value will be ignored for the purposes of eligibility.
7. There is a requirement for all grants made under this scheme to be state aid compliant.
Businesses applying to this Fund are required to confirm that in accepting a grant payment
they will not exceed State Aid limits.
The council’s approach
8. As funding for this scheme is limited, the council is focusing on the following businesses
for support:
• Businesses required to close that are unable to trade
• Businesses required to close that are able to trade by providing an alternative service
instead e.g. Takeaway
• Businesses only open to those who have to travel for work purposes (and for a limited
number of other exemptions which will be set out in law).
• Businesses not required to close, but their main business customers are mandated to close
from the 31 December 2020
9. The government has provided councils with one payment of LRSG (Closed) which is to be
utilised for any future national lockdown and Tier 4 payments for the period 2020/21 and
2021/22.
The council will advertise subsequent bidding rounds on its website.
10. The council reserves the right to vary the terms of the scheme at any time, and without
notice, should it be necessary to do so.
Application process and levels of grant
11. The funding application process will be online. This will be the route for all applications.
12. Only one grant will be considered per qualifying business.
13. If the fund is oversubscribed with the applications received, the council reserves the
right to amend the grant levels to a pro-rata basis, based on the applications received and
approved, as a way of dealing with this situation, should it arise.

Evidence required
14. Eligible businesses will be required to demonstrate that they meet the eligibility criteria
for the fund.
To do this, you are required to:
   •   Confirm that the business has not received any LRSG (Closed) grant from a Landlord
   •   confirm the business was not an undertaking in difficulty on 31 December 2020 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 exceeding the maximum
       level of State Aid permissible
15. All applications should be completed online, and payments will be made directly to
approved recipients’ bank accounts by electronic transfer.
Timeline for the grant scheme
16. Applications will be accepted from 07 January 2021 for the period of the lockdown.
Applications will be assessed as they are received.
Other information
17. Grant income received by a business is taxable. The Local Restrictions Support Grant will
need to be included as income in the tax return of the business.
18. Only businesses which make an overall profit once grant income is included will be
subject to tax.
19. The government and the council will not accept deliberate manipulation and fraud. Any
business caught falsifying their records to gain additional grant money will face prosecution,
and any funding issued will be recovered, as may any grants paid in error.
20. In administering these grants the council will undertake due diligence checks to mitigate
against risks of fraud and payment error.
21. The 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 scheme.
22. Enquiries about the scheme can be emailed to
businessdiscretionarygrant@ambervalley.gov.uk
23. The government has developed a package of support for businesses including loans, tax
relief and cash grants. Also available to self-employed people and sole traders, more
information can be found at https://www.gov.uk/coronavirus/business-support
23. The grant is not intended as a replacement of wages loss of sales but as a means of
support to help with business costs during this period
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