Business Grants Eligibility Criteria

Covid 19 Business Grants – 18 September 2020 onwards

This page will provide you with details of the eligibility criteria and grant value for a range of new Covid 19 business grants launch to support businesses through the local and national restrictions, from the 18th September 2020 onwards. We retain the right to review, amend or close these schemes at any point.

Newcastle City Council has also received a single lump sum grant from Government called ‘Additional Restrictions Grant’ to be used for direct business grants and business support over the next two years. Additional Restrictions Grant will be used to top-up the schemes listed above to allow us to extend the eligibility criteria.

Businesses may be eligible for more than one type of grant. Our systems are designed to calculate the grants that each business is entitled to, based on the information provided to us.

Please note that businesses’ eligibility may change over time depending on our circumstances e.g. Tier 2, Tier 3, National restrictions and Tier 4.

Local Restrictions Support Grant Closed

  • You must have been forced to close by Government (a full list of those sectors can be found here); or change the nature of the business (e.g. move to a collection and delivery service) due to the national lockdown;  or be able to evidence that your activity is intrinsically linked to the supply chains of the Hospitality, Leisure and Accommodation sectors and have therefore suffered a significant fall in demand.
  • You must operate from commercial premises located within Newcastle upon Tyne. If your premises are on the business rates valuation list, you must provide relevant account details. If your premises are not on the business rates valuation list, you must be able to provide evidence of ongoing fixed commercial property-related costs, evidenced through the following: signed lease; bank statements, utility bills. One grant award per business premises.
  • Businesses in shared premises will need to be able to demonstrate they are independent of each other, they incur fixed premises costs and you have a legal agreement for that space, e.g. tenancy agreement.
  • You must have been established and trading prior to the introduction of national restrictions (5 Nov).
  • Businesses that were forced to close due to national restrictions imposed in March, and have never been allowed to reopen (e.g. nightclubs) are also eligible for support during the period of National Restrictions.

Ineligible Businesses include:

  • Businesses without ongoing fixed commercial property costs including home based businesses operating from domestic properties, excluding B&Bs
  • Accommodation providers must be able to provide at least one form of evidence listed below upon request:
    • Planning permission for change of use to a B&B;
    • A fire certificate obtained when setting up the accommodation business to get business insurance policy and public liability cover;
    • A “hotel and mobile units television licence”, which covers up to 15 televisions and can be purchased online from TV Licensing;
    • A music licence from PPL PRS Ltd, if they have a TV in public areas, such as a bar or breakfast room, which has the sound turned on;
    • A personal and premise alcohol licence, if serving alcohol;
    • Registered with Newcastle City Council’s Regulatory Services
    • An up-to-date accreditation with Visit England or the AA with a star rating
  • Businesses that can continue to trade because they do not depend on providing direct in person services from premises (e.g accountants) will not be eligible.
  • Businesses that were in administration, are insolvent on or before 18 Sep 2020, or where a striking-off notice has been made.
  • Business that have already received the maximum level of state aid permissible (see below).

The amount you will get will depend on the 'rateable-value' of your business property on 5th November 2020.

Grant amount

 

 

Rateable value on 5 November 2020

Grant amount per 28-day period

 

Grant amount per 14-day period from 2 Dec

Exactly £15,000 or under

£1,334

 

£667

Over £15,000 and less than £51,000

£2,000

 

£1,000

Exactly £51,000 or above

£3,000

 

£1,500

Where your business does not have a rateable value; your grant level will be set at the lower level.

A single payment will be made to eligible businesses covering the period 18th Sep – 2nd Dec. After this point, grants will be payable on a fortnightly basis.

You can check the 'rateable-value' of your property at GOV.UK: Find your business rates valuation

Local Restrictions Support Grant Open

  • You must operate from commercial premises located within Newcastle upon Tyne. If your premises are on the business rates valuation list, you must provide relevant account details. If your premises are not on the business rates valuation list, you must be able to provide evidence of ongoing fixed commercial property-related costs, evidenced through the following: signed lease; bank statements, utility bills. One grant award per business premises.
  • Businesses in shared premises will need to be able to demonstrate they are independent of each other, they incur fixed premises costs and you have a legal agreement for that space, e.g. tenancy agreement.
  • Your business must have been established and trading prior to the introduction of local restrictions (18 Sep). Businesses that were forced to close due to national restrictions imposed in March, and have never been allowed to reopen (e.g. nightclubs) are not eligible for support, unless you have since repurposed your business (e.g. changed from a nightclub to a bar) and were legally operating prior to the 18 Sep.
  • Businesses that were in administration, are insolvent on or before 18 Sep 2020, or where a striking-off notice has been made, are not eligible for funding under this scheme.
  • You must operate within the hospitality, leisure and accommodation sectors or be able to evidence that your activity is intrinsically linked to the supply chain of these sectors.
  • You must be able to evidence you have suffered from a fall in demand as a result of the Local Restrictions.
  • The scheme does not operate during the period of national restrictions.

Ineligible Businesses for this Grant include:

  • Businesses without ongoing fixed commercial property costs including home based businesses operating from domestic properties, excluding B&Bs
  • This scheme is not designed for AirB&B and other similar short-term let businesses. Accommodation providers must be able to provide at least one form of evidence listed below upon request:
    • Planning permission for change of use to a B&B;
    • A fire certificate obtained when setting up the accommodation business to get business insurance policy and public liability cover;
    • A “hotel and mobile units television licence”, which covers up to 15 televisions and can be purchased online from TV Licensing;
    • A music licence from PPL PRS Ltd, if they have a TV in public areas, such as a bar or breakfast room, which has the sound turned on;
    • A personal and premise alcohol licence, if serving alcohol;
    • Registered with Newcastle City Council’s Regulatory Services
    • An up-to-date accreditation with Visit England or the AA with a star rating
  • Businesses that operate a takeaway service only are excluded
  • Business that have already received the maximum level of state aid permissible (see below).

The amount you will get will depend on the 'rateable-value' of your business property on 18 September 2020. The grant payment will be pro-rated to cover the eligible period (for instance 18th Sep – 4th Nov; 2nd Dec – 30th Dec).

Grant amount

 

 

 

Rateable value on 18 September 2020

Grant amount per 28-day period

Grant amount 18 Sep – 4 Nov 

 

Grant amount per 14-day period from 2 Dec

 

Exactly £15,000 or under

£934

£1,634.50

 

£467

 

Over £15,000 and less than £51,000

£1,400

£2,450

 

£700

 

Exactly £51,000 or above

£2,100

£3,675

 

£1,050

 

Where your business does not have a rateable value, your grant level will be set at the lower level.

A single payment will be made to eligible businesses covering the period 18th Sep – 2nd Dec. After this point, grants will be payable on a fortnightly basis.

You can check the 'rateable-value' of your property at GOV.UK: Find your business rates valuation

Christmas Support Payment for Wet-Led Pubs

Please note that Government has set a deadline of 28th February 2021 to apply for this grant. We will not be able to make payments for this element of grant for applications received after this date.

  • These grants are for pubs that under normal circumstances (without local or national restrictions) would be described as: open to the general public, allow free entry other than when occasional entertainment is provided, allow drinking without requiring food to be consumed and permit drinks to be purchased at a bar.
  • For these purposes, the definition of a pub excludes: restaurants, cafes, nightclubs, private members’ clubs, hotels, snack bars, guesthouses, boarding houses, sporting venues, music venues, festival sites, theatres, museums, exhibition halls, cinemas, concert halls and casinos.
  • You must be a wet-led pub; defined as a pub that derives less than 50% of its income from sales of food.
  • Businesses must have been trading on 30th November. Where local restrictions are preceded by national ‘lockdown’ measures, requiring the closure of businesses that are otherwise eligible, it is accepted that those businesses are still trading.

Ineligible businesses include:

  • Businesses that were in administration, are insolvent on or before 18 Sep 2020, or where a striking-off notice has been made.
  • Business that have already received the maximum level of state aid permissible (see below).

Grants will be a single one-off payment of £1,000 per eligible property.

Local Restrictions Support Grant Sector

  • You must operate within the following sectors: Nightclubs, dance halls, discotheques, sexual entertainment venues, and hostess bars.
  • You must operate from commercial premises on the business rates valuation list located within Newcastle upon Tyne. If your premises are not on the business rates valuation list you are not eligible.
  • You must have been established and trading prior to the introduction of the first national restrictions (March), and have never reopened.
  • Businesses that were in administration, are insolvent on or before 18 Sep 2020, or where a striking-off notice has been made, are not eligible for funding under this scheme.
  • This scheme does not operate during the period of national restrictions. 

The amount you will get will depend on the 'rateable-value' of your business property on 1 November 2020. The grant payment will be pro-rated to cover the eligible period (e.g. 1 Nov – 4 Nov; 2nd Dec – ongoing until further government announcements).

Grant amount

 

Rateable value on 1 November 2020

 

Grant amount 1 Nov – 4 Nov

Grant amount per 14-day period from 2 Dec.

Exactly £15,000 or under

 

£191

£667

Over £15,000 and less than £51,000

 

£286

£1,000

Exactly £51,000 or above

 

£429

£1,500

Further Details

The Council reserves the right to vary the terms, or close the schemes at any time, and without notice, should it be necessary to do so.

The Council will not approve or make payment of a further grant to a business that has already received a Local Restrictions Support Grant or partial grant for the same property, passed on by a landlord. 

Subsidy Control

The United Kingdom has now left the European Union, and there is a new UK subsidy control regime. The previous State aid rules no longer apply in most circumstances.

Under this new subsidy control regime, the Council is permitted to award an individual/organisation just over £337,000 (as of mid-February 2021, subject to currency fluctuations) in any three fiscal years. Funding is subject to this allowance not being exceeded during that period. This £337,000 allowance also includes any previous funding you/your organisation received as de minimis State aid (under the previous regime). Applicants will be required to declare any such subsidy/aid received in the last three years.

(Further information on this allowance can be found at Section 5.1 of the guidance here:

https://www.gov.uk/government/publications/complying-with-the-uks-international-obligations-on-subsidy-control-guidance-for-public-authorities/technical-guidance-on-the-uks-international-subsidy-control-commitments#section5)

 Where this limit has been exceeded, it may still be possible for the Council to provide funding support. Applicants in this position should email businesssupport@newcastle.gov.uk for further details. For example it may be possible, subject to eligibility, to provide additional funding under the Covid-19 Temporary Framework for UK Authorities

Grant Awards

The Council has been awarded limited funds from Government for this scheme and it is expected that there will be a high level of demand from business.

Grant awards will be made at the levels set out above for the Local Restrictions Support Grant (Open), Local Restrictions Support Grant (Closed) and Local Restriction Support Grant (Closed), and Christmas Support Payment for Wet-Led Pubs (CSP) schemes.

Applications for grant will be made through a dedicated online grant portal and business will be required to confirm they are eligible for the scheme(s).

Applicants must first apply for the grant covering the period 18th Sep – 2nd Dec. The portal to do this can be accessed here.

They will then be given a reference number which will be required to apply for further funding from the 2nd Dec onwards, through this portal.

A grant may be paid for each qualifying property from which an applicant business operates eligible activity. A separate application must be submitted for each eligible property.

Payments will be made directly to approved recipients’ bank accounts by electronic transfer.

Beneficiaries will receive written confirmation stating that by accepting the grant payment, the business confirms that they are eligible for the grant scheme, including that any payments accepted will be subject to state aid requirements.

Other Information

Grant income received by a business is taxable. Only businesses which make an overall profit once grant income is included will be subject to tax.

The Government and the Council will not accept deliberate manipulation and fraud and any business falsifying their records to gain grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error.

State Aid rules and requirements apply to these grant schemes.

The Council does not accept any liability for any issues that may arise for businesses because of applying for, receiving, or not receiving grant payments under this scheme.

Enquiries about the scheme can be emailed to businesssupport@newcastle.gov.uk

Grant awards will be made to applicants satisfying the above eligibility criteria subject to the availability of resources.

There is no appeal process.

Go here  to go back to the business support page.

 

 


[1] As defined in Article 2(18) of the General Block Exemption Regulation

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