COVID-19 National Lockdown Business Grants and Support

COVID-19 National Lockdown Business Grants and Support

Grants for Business in Folkestone & Hythe District

Folkestone & Hythe District Council are administering the Government’s Covid-19 related business grants on behalf of central government

Since the start of the national lockdown period on 4th November 2020, there have been a number of business grant schemes available for businesses in the district.

Folkestone & Hythe District Council have administrated a number of schemes with the main ones being the Local Restrictions Support Grant (LSRG) and the National Lockdown Grant, both of which are mandatory grants awarded during the national lockdown periods to eligible businesses in business rated premises and a discretionary Additional Restrictions Grant (ARG) scheme.

The recent March 2021 budget announced the introduction of a new mandatory Restart Grant for eligible businesses in business rated premises and a ‘top-up’ allocation of £675,239 for the Additional Restrictions Grant scheme.

Below is a summary of these grant schemes but please note that all schemes, with the exception of the Restart Grant scheme, are now closed to new applicants

View all guidance to business support grants here

RESTART GRANT

The Restart Grant is one-off grant funding scheme in financial year 2021-2022 for non-essential retail, hospitality, accommodation, leisure, personal care and gym businesses in England.

Businesses that are eligible for this support will receive this from local authorities from 1 April 2021.

Folkestone & Hythe Businesses that have received Local Restrictions Support Grant to date and are eligible for this grant will receive these payments automatically in April and they need not reapply. This scheme replaces the Local Restriction Support Grant which ends on 31 March 2021.

For further details about the scheme and access to the application form for businesses that have not received an LSRG grant and think they may be eligible, see https://www.folkestone-hythe.gov.uk/restart-grant-scheme

The Restart Grant scheme closes to new applicants on 30th June 2021.

Local Restrictions Support Grant (LSRG) 

There are two official LRSG schemes – LSRG (closed) and LSRG (open):

  • LSRG (closed) is for businesses that are business rates payers and are legally required to close during Tier 3 restrictions, Tier 4 restrictions and for the national lockdown periods in November 2020 and from 5th January 2021.
  • LSRG (open) scheme is a discretionary grant scheme which Folkestone & Hythe District Council has subsumed within the Additional Restrictions Grant scheme (see below).

The following details in this section relates to the officially titled LSRG (closed) scheme which we have called LSRG for simplicity.

The LSRG scheme is for businesses legally required to close during Tier 3 restrictions and Tier 4 restrictions and for the national lockdown periods in November and from 5th January 2021 and pay business rates.

This scheme has therefore been applicable to different types of businesses during these different periods, with some qualifying for an LSRG in all periods and others only eligible during the national lockdowns.

The Government has provided information on which types of business are legally required to close.

See these links for those who were legally required to close in January 2021 national lockdown.

https://www.legislation.gov.uk/uksi/2020/1374 and https://www.legislation.gov.uk/uksi/2021/8/made

If your business is eligible for this scheme during the national lockdown from 5th January 2021, you will be contacted by the Business Rates team.

However, if you have NOT received any notification since 4th November 2020 and think that your business may be eligible because you were legally required to close, please contact the team on 01303 853223 or by email to business.rates@folkestone-hythe.gov.uk

Once an LSRG application has been made for any period and this has been approved (and potentially already paid), further grants will be automatically paid if you remain eligible, for the period up to the middle of February 2021, (when the Government is due to review the current national lockdown).

Please note: even if your business was/is legally required to close and you are NOT a business rates payer, you will NOT be eligible for an LSRG and should apply for an Additional Restrictions Grant (ARG).

The closing date for LRSG applications is 31st January 2021.

Download LRSG guidance here

Additional Restrictions Grant (ARG)

The ARG is a discretionary grant scheme which is being administered by the Economic Development team in Folkestone & Hythe District Council.

This scheme is for businesses that have been impacted by the national lockdown, Tier 3 restrictions and Tier 4 restrictions and for the national lockdown from 5th January 2021 and is based on government guidance to local authorities.

If a business is eligible for an LSRG, then it would NOT normally also qualify for an ARG. However, this can be considered on a case by case basis and can be awarded under some circumstances.

Businesses eligible for this grant need to demonstrate at least a 25% impact on business turnover during the National Lockdown or Tier 3 and Tier 4 restrictions and for the national lockdown from 5th January 2021 period and have incurred fixed costs which are at least 30% of eligible grant value for the business.

Businesses eligible for an LSRG during the November and January lockdown period, but not eligible during Tier 3 or Tier 4 restrictions, can apply for an ARG for these periods. For more information about this scheme and to access the application form please click here

The Folkestone & Hythe Additional Restrictions Grant scheme closed to new applicants on 19th March 2021.

Most applicants approved for an ARG grant will receive a further grant payment after 1st April 2021, following the government announcement at the March 2021 budget of an additional ‘top-up’ allocation for local authority schemes.

This will be paid automatically on the basis that:

  • Acceptance of grant payments by any business means that you are confirming your eligibility for the grant scheme and, if your business is no longer eligible – i.e. you have become insolvent and ceased trading and/or that the state aid receive now exceeds UK Subsidy Allowances (which replaces EU State Aid regulation), the grant will need to be returned.  Please see paragraphs 78-91 in this document for further information about these limits https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/971482/additional-restrictions-grant-la-guidance.pdf
  • The Government will not accept deliberate manipulation and fraud and any business caught falsifying their records to gain additional grant money will face prosecution.  Any funding issued will be subject to claw back, as may any grants paid in error.

Two levels of grant award for this payment

Businesses in the Accommodation, Hospitality, Leisure, Personal Care and Gym sectors will receive:

  • £2,667  – for those that previously received £6,001 for first 6 weeks of January national lockdown
  • £4,000 – for those that previously received £9,000 for first 6 weeks of January national lockdown
  • £6,000 – for those that previously received £13,500 for first 6 weeks of January national lockdown

Businesses in all other sectors will receive:

  • £1,333.50 – for those that previously received £6,001 for first 6 weeks of January national lockdown
  • £2,000 – for those that previously received £9,000 for first 6 weeks of January national lockdown
  • £3000 – for those that previously received £13,500 for first 6 weeks of January national lockdown

Please note: This ARG payment is only be available to businesses that qualified for an ARG during the November or January national lockdown periods and are not eligible for a Restart Grant in April 2021.

Download ARG guidance here

Local Restrictions Support Grant (Sector)

This grant scheme is available to businesses that have been legally required to close due to national restrictions during Tier 3 and Tier 4 restrictions and for the national lockdown from 5th January 2021 period and which have not been able to re-open as a result of regulations made under the Public Health (Control of Disease) Act 1984.

Eligible businesses include Nightclubs, dance halls and discotheques and other entertainment venues.

This scheme is being administered by the Business Rates team at Folkestone & Hythe District Council and eligible businesses will be contacted directly.

Download LRSG (Sector) guidance here

Christmas Support Payment for wet-led pubs

This grant was available to support wet-led pubs that have been severely impacted over the festive season due to temporary local restrictions.

Eligible pubs in the Folkestone & Hythe district are those that derive less than 50% of sales from food and have not yet reached the de minimis State Aid threshold.

A one-off cash grant of £1,000 has been paid to eligible businesses and the scheme is being administered by the Business Rates team at Folkestone & Hythe District Council.

Download Christmas Support Payment for wet-led pubs guidance here

National Lockdown Grant

The government has introduced a new National Lockdown Grant for the current national lockdown that commenced 5th January 2021.

These grants are available to businesses legally required to close and meet other eligibility criteria. This is payable in addition to an existing LSRG for eligible businesses for this period.

All eligible businesses that have already applied for an LSRG for the November 2020 national lockdown period, will automatically receive this additional grant.

Download Business support package for January 2021 guidance here
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