Firms urged to move fast on ‘discretionary’ grants

Firms urged to move fast on ‘discretionary’ grants

01 June 2020

Businesses who may be eligible for the Government’s new Discretionary Business Grant scheme are being urged to act fast.

The scheme is aimed at businesses and charities that did not qualify for existing coronavirus small business grant schemes, such as those in flexible working space which do not have their own business rates assessment or those receiving charitable business rates relief.

The deadline to apply to East Staffordshire Borough and Solihull Metropolitan Borough councils is this Sunday, while the deadline for Birmingham City Council is Sunday 14 June.

The scheme is also expected to go live for firms in Lichfield and Tamworth, Stafford and Cannock Chase later this week, with more details to be published on local authority websites shortly.

There are three levels of grant available - £25,000, £10,000 or any amount under £10,000.

Each local authority has some discretion over how they administer the scheme.

As a result, there are different application deadlines depending on the local authority area your business is based in.

Across Greater Birmingham the following has been announced so far:

• Birmingham City Council - 14 June (find out more and apply here)
• East Staffordshire Borough Council -  7 June, (find out more and apply here)
• Solihull Metropolitan Borough Council (7 June, find out more and apply here)

In most cases, grants are being assessed on a first come first served basis.

Businesses can also speak to their Local Enterprise Growth Hub advisers for more information and advice on applying for business support grants (for more information on Greater Birmingham & Solihull Growth Hub click here, for Stoke-On-Trent & Staffordshire Growth Hub click here).

To be eligible, businesses need to employ fewer than 50 staff and be paying ongoing commercial fixed property-related costs, such as rent, service charge, lease or licence.

Businesses are not able to apply if they have already received cash grants from any central government Covid-19 related scheme.

Self-employed individuals receiving grants through the self-employed income support scheme can apply.

Henrietta Brealey, director of policy and strategic relationships at Greater Birmingham Chambers of Commerce, said: “If your business could benefit from this grant scheme we urge you to move fast and submit your application. The deadlines are tight and many decisions are being made on a first come first served basis.

“We have been urging the Government to act on providing equivalent support to businesses that are not responsible for business rates for some time. No business should miss out on support just because of the nature of their rental contract.

“In principle these grants are a very welcome step forward. In practice, the overall funding envelope for this grant scheme is far, far too small to even scratch the surface. The discretionary grant scheme is worth just five per cent of the existing business rates link grants fund. The amount of funding available cannot possibly meet the demand for it.

“On top of that, this is not new money. The funding allocated to this scheme will be taken from that which has already been given to local authorities for the existing Small Business & Retail, Leisure and Hospitality sector grant programmes.

“We are joining forces with the West Midlands Combined Authority and Birmingham City Council to call on the Government to 1) significantly increase the level of funding available, 2) allow local authorities further discretion in how they allocate the funding, including being able to use it to fund small and micro businesses investing in making their workplaces Covid-secure and 3) enabling local authorities locally to pool any unallocated funding from the existing business rates linked scheme to improve consistency and boost the number of businesses able to access support.”

For more information on the funding and support available for local businesses click here.