Folkestone & Hythe Additional Restrictions Grant

New Covid-19 Business Support Scheme

***PLEASE NOTE: The deadline for applications has now passed and we are unable to accept further applications.

Overview

This grant scheme is fully funded by central government and the funds will be administered by Folkestone & Hythe District Council in accordance with the guidance issued by the Department for Business, Energy and Industrial Strategy (BEIS). This latest guidance can be read by clicking here.

Following the announcement by Government on 21 December 2021 to provide further funding to support businesses affected by the COVID Omicron variant, the Folkestone & Hythe ARG scheme has reopened for applications for non-business rate paying businesses within the Folkestone & Hythe District.

Please note: If you are a business rates payer and eligible for Omicron Hospitality & Leisure (OHL) Grant, you are not eligible for the ARG scheme.

The scheme is open for applications until 5pm on Friday 4th March 2022. An application form is at the bottom of this page but it is important that you read the following information before applying:

We are aware that fraudsters are posing as agents and encouraging businesses to complete a form/information sheet to allow them to claim a grant on their behalf and therefore gathering all their financial information so they can submit a fraudulent claim and steal the grant. We will provide advice for free so please beware of any offers of help as we want to ensure that this grant money goes direct to the businesses which need it.

Eligibility Criteria

The eligibility criteria for a Folkestone & Hythe COVID Omicron ARG award for December 2021 are businesses that:

Are not eligible for the Omicron Grant which available to eligible businesses in the business rate system.
Are in an eligible business sector (see Eligible Sectors below)
Have been severely impacted*by the effects of the Omicron variant during December 2021 with business income reduced by at least 15%.
Incur fixed monthly business costs** that account for at least 15% of the appropriate grant award for the business.
Are a registered business or organisation (i.e. not a sole trader) unless providing serviced holiday accommodation (i.e sole traders providing serviced holiday accommodation are eligible).
Operates or has a presence in the Folkestone & Hythe district.

Are actively trading*** and are not in administration, insolvent or be subject to a striking-off notice
Have not received more financial support than is allowable under the Small Amounts of Financial Assistance Allowance, the COVID-19 Business Grant Allowance and the COVID-19 Business Grant Special Allowance.

Grant paid are subject to permitted maximum subsidy allowances, so if these are breached the responsibility lies with the applicant and, in line with the legislations, the council can take action to recover the funding.

Maximum Subsidy Allowances: Grants to a company can be paid up to £335,000 over a rolling period of three fiscal years in accordance with Article 364(4) of the Trade and Cooperation Agreement (TCA) with the EU which enables an applicant to receive up to a maximum level of subsidy without engaging Chapter 3 of the TCA. Further information on the allowances can be found in paragraphs 83 – 96 of the following document Additional Restrictions Grant Guidance for Local Authorities (updated 30 December 2021)

Please note: any grant income received by a business is taxable, but only businesses that make an overall profit once grant income is included will be subject to tax.

*Severely impacted – a statement and figures will be required from the applicant which demonstrates that the impact of the Omicron variant in December 2021 has been at least 15% on expected income.

** Fixed monthly business costs – these are any costs relating to the operation of the business that cannot be cancelled during this period. These could include property costs such as rent, business loans, insurance, subscriptions, professional fees, phones, mobile and broadband, utilities, etc. Fixed costs do not include employee costs or costs for products and business supplies. Fixed business costs need to account for at least 15% of the appropriate grant award for the business to be eligible for a grant.

***Trading – a business was clearly operating from an address within the district on or since 30 December 2021 and engaged in carrying out business activity (a trade or profession) or buying and selling goods or services in order to generate turnover.

Eligible Sectors

Registered businesses in all sectors are eligible to apply for an ARG award. However, please note that all applicants will be required to meet the impact criteria and fixed costs criteria outlined above. The figures provided in the application form on impact and fixed costs will need to be substantiated by supporting evidence which is required to be submitted separately as set out in the Application Process section below.

Exclusions

The following businesses will not be eligible for a Folkestone & Hythe Additional Restrictions Grant:

Businesses that are eligible for a OHLG Grant.
Businesses whose turnover has not been impacted by at least 25% by the COVID Omicron variant and do not have fixed costs which account for at least 15% of the appropriate grant award for the business.
Sole Trader unregistered businesses unless providing serviced holiday accomodation.
Businesses that have already received grant payments that equal the permitted maximum permitted subsidy allowances.
Businesses that are in administration, insolvent or subject to a striking-off notice and were not actively trading on or since 30th December 2021.

Grant Levels

The grant awards for the Additional Restriction Grant (ARG) scheme for Folkestone and Hythe district will be similar to the OHLG Grant and is as follows:

£2,667 – where business accommodation has a rateable value under £15,000 or has under 5 FTE employees (including those furloughed) and annual turnover was under £150,000 in the 2020/21 financial year
£4,000 – where business accommodation has a rateable value between £15,001 – £51,000 or has 5 to 20 FTE employees and annual turnover was between £150,001 and £250,000 in the 2020/21 financial year
£6,000 –where business accommodation has a rateable value over £51,000 or has more than 20 FTE employees and annual turnover was greater than £250,001 in the 2020/21 financial year

Where a business is not located in business rated property and occupies shared business premises or is residence-based, reference will be made to the size of the business (number of employees and annual turnover in 2019/20 financial year) and the financial impact on turnover during December 2021 in determining the level of grant awarded.

Appeals

Where a business disputes the decision made by the council, the appellant should send an email to economy@folkestone-hythe.gov.uk requesting an appeal within one week of receiving a decision notification. Appeals should include a statement and supporting evidence.

The application and appeal documents will be considered by the council’s Director of Place, who will make a final decision in consultation with the leader of the council. The appellant will subsequently be notified of the outcome of their appeal.

Application Process

The closing date for applications is 5pm on Friday 4 March 2022.

Please note: There are limited funds available for this round of the Folkestone & Hythe ARG scheme, so a ‘first come first served’ system will operate for those applications that meet the criteria until the funds are fully allocated.

Businesses applying for Additional Restrictions Grant funding will be required to provide the following supporting evidence in support of their application. This should be emailed separately to economy@folkestone-hythe.gov.uk following completion of the application form. This supporting evidence is required to support an application and if this is not received by the deadline the application will be invalidated.

The following supporting evidence is required:

A copy of a bank statement from within the last three months that shows the business/applicant’s name, and registered address. This should be for the same bank account for which details are provided on the application form
Evidence of payment of monthly business fixed costs for November 2021. This can be in the form of itemised expenditures on a bank statement or invoices
Summary financial accounts for the latest available financial year.

Please note that the following details will be required for the application form. It is suggested that this information is prepared ahead of starting to complete the application form:

Company or Charity Commission registration number
Total business income in the 2020/21 financial year (£)
Total business costs in the 2020/21 financial year (£)
Total business income that had been expected for December 2021 prior to the impact of the Omicron variant(£)
Total business income that was received December 2021 following the impact of the Omicron variant(£)
Total fixed business costs and individual fixed cost items incurred for November 2021(£)

All enquiries about this grant funding and this policy should contact the Economic Development Team using the email address economy@folkestone-hythe.gov.uk

Important information regarding fraudsters posing as agents

How to apply for Folkestone & Hythe Additional Restrictions Grant

The Folkestone & Hythe Additional Restrictions Grant scheme is now open for applications. The closing date for all new applications is 5pm on Friday 4th March 2022.

If you have any enquiries about the scheme please email economy@folkestone-hythe.gov.uk or call the economic development team on 01303 853287.