Businesses forced to close due to Covid-19 could be in line for extra support. Central government is making available grants for businesses, which will be distributed by local councils. Local Restrictions Support Grants (LRSG) and Additional Restrictions Grant (ARG) are designed to compensate businesses for lost income.
Local Restrictions Support Grants
Funding is targeted at businesses forced to close due to Covid-19. You will likely qualify for the grants for businesses if you had to close during England’s second national lockdown (5 November to 2 December 2020) and periods of tiered local restrictions.
Am I eligible for an LRSG?
Eligible businesses include non-essential retail, leisure, personal care, sports facilities and hospitality businesses. They must pay business rates and have been forced to close due to Covid-19 restrictions. Businesses must be registered with their local authority and have been trading on or before 4 November 2020.
Who can’t claim grants for businesses?
There are a number of exclusions. Businesses forced to close due to Covid-19 cannot claim an LRSG if they:
- opted to close but were not legally required to do so
- were already closed before it became a legal requirement
- are still trading because they do not provide in-person services from their premises
- have already received grant payments equal to the maximum state aid permitted under the de minimis and Covid-19 Temporary State Aid Framework
- are in administration or insolvent
How much will I receive?
LRSGs are linked to the Rateable Value for occupied properties. Broadly, these are:
- Rateable Value of £15,000 and below = £1334 per 28-day qualifying period
- Rateable Value above £15,000 and below £51,000 = £2000 per 28-day qualifying period
- Rateable Value of £51,000 and above = £3000 per 28-day qualifying period
Additional Restrictions Grant (ARG)
Local authorities can offer further support under the Additional Restrictions Grant. Basically, this will comprise discretionary grants for the financial years 2020/21 and 2021/22. Businesses that don’t qualify for help under the LRSG schemes could be eligible for an ARG.
When can I claim?
Each council is making its own arrangements. Not all schemes are open at the same time. Check your local council’s website for details of when and how to claim.
Find out about grants for businesses forced to close due to Covid-19:
Lichfield District Council
Tamworth Borough Council
Stafford Borough Council
East Staffordshire Borough Council
Newcastle-Under-Lyme Borough Council
City of Stoke-on-Trent
Staffordshire Moorlands District Council
South Staffordshire Council
Cannock Chase Council
Has your business been forced to close due to Covid-19? Our team is ready to advise and, where appropriate, help you claim a grant. Call us on 01785 243276.
Read our Covid-19 Q&A on Ask Howards