Coronavirus grant due to national restrictions (for closed businesses)

Businesses that were open as usual, but were then required to close between 5 November and 2 December 2020 due to the national restrictions imposed by government may be eligible for LRSG (Closed) Addendum.

Eligible businesses may be entitled to a cash grant from their local council for each 28 day period under national restrictions.

When national restrictions are introduced and businesses are required to close, LRSG (Closed) is superseded by LRSG (Closed) Addendum.

Eligibility

Your business may be eligible if it:

• is based in England
• occupies property on which it pays business rates (and is the ratepayer)
• has been required to close because of the national restrictions from 5 November to 2 December 2020
• has been unable to provide its usual in-person customer service from its premises

For example, this could include non-essential retail, leisure, personal care, sports facilities and hospitality businesses. It could also include businesses that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead.

Eligible businesses can get one grant for each non-domestic property.

Businesses excluded from the fund

You cannot get funding if:

• you can continue to operate during the period of restrictions because you do not depend on providing direct in-person services from your premises (for example accountants)
• you have chosen to close, but have not been required to close as part of national restrictions
• your business is in administration, insolvent or has been struck off the Companies House register
• you have exceeded the permitted state aid limit

You must notify your local council if your situation changes and you no longer meet the eligibility criteria.

If you already get state aid

EU state aid rules apply to all payments made before 1 January 2021.

LRSG (Closed) Addendum counts towards the total de minimis state aid you’re allowed to get over a 3-year period - €200,000.

If you have reached the de minimis threshold, you may still be eligible for funding under the COVID-19 Temporary Framework. The limit for this framework is €800,000.

Please speak with our tax department if you have exceeded the €200,000 threshold.

Your local council will ask you to complete a declaration confirming that:

• you will not exceed the relevant state aid threshold
• you will need to provide additional evidence to receive payments under Section 3.12 of the Temporary Framework
• you were not an ‘undertaking in difficulty’ on 31 December 2019 (this applies to the temporary framework only)

The undertaking in difficulty test does not apply to small and micro undertakings (less than 50 employees and less than €10 million of annual turnover or annual balance sheet) unless any of the following apply:

• the business is already in insolvency proceedings
• the business has received rescue aid that has not been repaid
• the business is subject to a restructuring plan under state aid rules

What you get

The grant will be based on the rateable value of the property on the first full day of restrictions.

If your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of £1,334 for each 28-day qualifying restrictions period.

If your business has a property with a rateable value over £15,000 and less than £51,000, you may be eligible for a cash grant of £2,000 for each 28-day qualifying restrictions period.

If your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of £3,000 for each 28-day qualifying restrictions period.

How to apply

Visit your local council’s website to find out how to apply.