FOLLOWING the distribution of two earlier grant funds for businesses in lockdown a new, smaller amount of funding is now being made available for enterprises in Redcar and Cleveland which have not previously received support.
Building on the previous Small Business and Retail, Hospitality and Leisure Grant Funds the Government has now provided an additional £1.35 million to the council for a new fund for small businesses with high fixed property-related costs which can demonstrate a significant fall in income during the lockdown.
The new fund is called the Local Authority Discretionary Grant Fund (LADGF). Businesses which have previously received grants from either the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund will not be able to apply to the LADGF.
Since the lockdown, the council’s business support teams have paid out more than £20 million in grants to more than 1,900 businesses and have provided advice and support to hundreds of others. The Government has made a relatively smaller amount of £1.35 million available, and it is anticipated this amount will not be enough to fund every business which applies. This will result in the need for the council to exercise discretion over the businesses which benefit from the grant funding.
To qualify businesses must:
Be a small or micro businesses, as defined in Small Business, Enterprise and Employment Act 2015 and the Companies Act 2006;
Have relatively high ongoing fixed property-related costs;
Not have had a grant from either the Small Business and Retail, Hospitality and Leisure Grant Funds;
Be able to demonstrate that they have suffered a significant fall in income due to the COVID-19 crisis.
Councillor Wayne Davies, Cabinet Member for Economic Development, said: “We know this is a difficult time for our small, local businesses who are the lifeblood of our economy and we are determined to do all we can to provide support and we urge business people who qualify to apply for this new fund. We pride ourselves on being a highly business-friendly council and borough and will continue to support enterprise as much as we can.”
Find out more about Government support for business during the coronavirus lockdown at https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19