COVID-19: New grants for businesses affected by local lockdowns

COVID-19 grants for businesses affected by local lockdowns

On 9 September 2020, Ministers announced new funding to support businesses that have been forced to close temporarily due to local COVID-19 related lockdowns.

To be eligible for the grant, a business will have been required to close due to local COVID-19 restrictions. Businesses still closed at a national level (e.g. nightclubs), will not be eligible for the scheme.

Larger businesses will receive £1,500 every three weeks they are required to close. Smaller businesses will receive £1,000. For this purpose, the level of support will be defined as follows:

  • If a business occupies premises with a rateable value of less than £51,000 or occupies a property or part of a property subject to an annual rent or mortgage payment of less than £51,000, it will receive £1000.
  • If a business occupies premises with a rateable value of exactly £51,000 or above or occupies a property or part of a property subject to an annual rent or mortgage payment of exactly £51,000 or above, it will receive £1500.

A national decision to close businesses in a high COVID-19 incidence area will trigger a payment. Each payment will be made for a 3-week lockdown period. Each new 3-week lockdown period triggers an additional payment.

This targeted support is in addition to businesses’ eligibility for the Government’s existing schemes of support, and to those businesses which remain available to or supply impacted companies. This includes the Coronavirus Job Retention Scheme, which has supported the wages of 9.6 million people so far, government-backed loans, and business grants worth up to £25,000 per property.

The support will also complement the Chancellor’s Plan for Jobs as it will support local jobs that depend on impacted businesses.

“No business should be punished for doing the right thing, which is why today’s package will offer additional breathing space for businesses that have had to temporarily close to control the virus.”  – Business Secretary Alok Sharma.

If you would like any more information relating to this article then please feel free to contact me: Telephone – 020 8221 8057, via email: cemre.koroglu@bowlinglaw.co.uk or visit my profile.

This is not legal advice; it is intended to provide information of general interest about current legal issues.

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