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Local Authority Discretionary Grants available now for firms hit by pandemic - with focus on shared work spaces, market stalls and B&Bs

17:06, 18 May 2020

updated: 17:07, 18 May 2020

Businesses which use shared work spaces - and therefore may have missed previous grant funding support packages - are being urged to apply for the latest cash handouts to ease the impact of the pandemic.

The Local Authority Discretionary Grant is designed to ensure those ineligible for previous funding as they did not pay business rates directly can receive support.

Funding for small businesses - which does not have to be repaid - is available through local authorities
Funding for small businesses - which does not have to be repaid - is available through local authorities

Administered by local councils, each authority has been awarded around 5% of the funding previously made available through the Small Business Grant Fund.

So, for example, in Maidstone, that equates to around £1.4million.

Explains Stephen McGinnes, director of Mid Kent Services, which works on behalf of Maidstone, Tunbridge Wells and Swale councils: "One of the challenges with the Small Business Grant Fund is that because it was reliant on firms having a business rate liability it excluded a number of operations - particularly those in shared workspace; so an office where people rent a desk or a small section of the office. In those situations they were instantly excluded.

"So the discretionary scheme sets to prioritise those types of businesses. So shared workspace, bed and breakfast accommodation, some charities, excluded after the first round, and market stalls."

Grants - which, unlike loans do not have to be paid back - will be disbursed in chunks worth £25,000 or £10,000. In additional, councils can pay any amount to firms under £10,000.

Steve McGinnes is urging businesses not to miss out on the grants available
Steve McGinnes is urging businesses not to miss out on the grants available

Adds Mr McGinnes, who is handling the Maidstone district call for applications: "Some of the guidance includes businesses need a fixed building related cost, having seen a significant reduction in income due to Covid-19, have less than 50 employees and having not received money from other grants."

However, firms in the county town have just 21 days to apply for the money and should contact Maidstone Borough Council's website for details. All authorities will make their own funding decisions on applications.

For other districts, those who may be eligible should first check with their own local authority.

It is another layer of repayment-free handouts following on from the Small Business Grant Fund.

That provided cash grants of between £10,000 and £25,000 and had similar criteria to the Retail, Hospitality and Leisure Grant scheme.

Firms could receive up to £25,000 in grants to help them survive the pandemic
Firms could receive up to £25,000 in grants to help them survive the pandemic

But despite being widely publicised, local authorities, which have been coordinating applications and payments, say they fear some may miss out on money which could be the difference in survival for a company.

Mr McGinnes says for some the offer of the money is sounding too good to be true and urged firms not to turn their back on potentially crucial funding.

He explained: "In Maidstone, we've had staff calling up businesses and some of the messages we've had back is that people thought it was a loan and were reluctant to take that on at this point. Or that they were just suspicious that someone offering their business a £10,000-25,000 cash injection with no strings attached is too good to be true.

"Once we've managed to reassure people, most businesses are keen to take it up.

"But there's been a lot of publicity, and for good reason, around different sorts of scams that are operating therefore any type of email contact people have they are naturally suspicious. If in any doubt they should just call up the council through the switchboard and confirm."

"They were just suspicious that someone offering their business a £10,000-25,000 cash injection with no strings attached is too good to be true."

Thanet reported last week just 84% of eligible firms had taken advantage of the funding.

A grant of £10,000 is available for company's with property that has a rateable value to up to £15,000. A grant of £25,000 is available for properties with a rateable value of between £15,000 and £51,000.

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