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Discretionary support grant for business opens

Andrew Gilbert

Andrew Gilbert

Posted on 04 June 2020

Allerdale businesses affected by the Coronavirus outbreak are now able to apply for funding under the Local Authority Discretionary Grants Fund

Funding for the scheme comes from central government as part of their business support measures in response to the outbreak. 

Cumbrian Councils, including Allerdale Borough Council, have been working together since the initial announcement of the Local Authority Discretionary Grants Fund to develop a similar approach to ensure any schemes offered are coherent throughout Cumbria. 

Although each of the Councils have been provided with differing sums of finance, the intention has been clear from each Council and their Elected Members that the aim must be to support the largest number of businesses possible within the funding provided whilst still adhering to the Government’s set criteria.

Central Government has set down key criteria for businesses to be able to access the Local Authority Discretionary Grants Fund. Eligible businesses must:

Have been trading on the 11th March 2020
Have not have been eligible or received a grant from the existing Covid grant schemes or other support schemes (excluding the Self-employed Income Support Scheme).  
The initial guidance provided by government excluded those businesses that were eligible for the Self-Employment Income Support Scheme but through continued local and national representation by Councils and partners, the criteria of the Local Authority Discretionary Grants Fund was amended on the 23 May to include such businesses.

In addition to the eligibility criteria, the Government has outlined that the grants are primarily and predominantly aimed at the following businesses:  

  • Small or Micro businesses
  • Businesses with relatively high ongoing fixed property-related costs. 
  • Businesses which can demonstrate that they have suffered a significant fall in income due to the COVID-19 crisis. 
  • Businesses which occupy property, or part of a property, with a rateable value or annual rent or annual mortgage payments below £51,000 (where a rateable value exists this will be the figure used). 

The guidance on the Fund has set down that the grants can be allocated in amounts of £25,000, £10,000 or the Local Authority has discretion on any amounts they wish to provide under £10,000. Given the limited funding being made available it is unlikely that any of the Councils will award many, if any, grants of £25,000 as this would quickly deplete the Fund and may mean a larger number of businesses going without much needed money.

Cllr Mike Johnson, Deputy Leader of Allerdale Borough Council, said: "We want to help as many eligible businesses as possible, and so I'd encourage every business to apply for this grant. The scheme is designed to help those who have not been able to take advantage of some of the other help that is available, so it is even more crucial that these businesses get the assistance they at entitled to. The scheme itself is designed to provide help to those most in need, and to provide a meaningful payment to as many businesses as possible. There is a 14-day window for applications - meaning that it won't be on a first-come first-served basis. Therefore, I'd encourage everyone to collate the documentation and evidence together before applying online - and  ensure they have everything required before submitting their application. Doing so will help us process applications, meaning we can make payments as soon as possible after the 14 day application window is over." 

Businesses can find more details on the scheme on the council's website .

Online applications for the Local Authority Discretionary Grants Fund provided through Allerdale Borough Council opened on Monday, 1 June. The online form is available on the same page of the website.

The council is encouraging applicants to read the eligibility criteria closely before applying, and making sure they include all the necessary documentation to accompany their application.

Applications will be open for a full two weeks and applicants will need to submit their application before 5pm Monday, 15 June. Applications will close at this point. 

Once the two week window has closed, applications will be assessed with funding prioritised and paid out to businesses as soon as possible.