Fish and chip shops that are struggling to survive due to the Coronavirus shutdown and which have been unable to access government grant funding may benefit from a cash injection via a new Local Authority Discretionary Fund.
With over £2bn of grants for small businesses left unclaimed, the government has now issued local authorities with an additional £617m to distribute at its discretion to businesses that have fallen through the cracks of its initial financial packages.
Local authorities will be responsible for delivering grants of up to £25,000 to businesses with less than 50 employees, that have on-going fixed costs and that were trading on 11th March 2020.
Businesses that have used the Job Retention Scheme are eligible, however, businesses that have received funding through Retail Hospitality and Leisure (RHL) grant, Small Business Grant or Self Employment Income Support Scheme are not.
The grants are subject to tax.
Each authority will receive 5% of the funding they received under the RHL grants.
Local authorities are encouraged to make payments as quickly as possible to support struggling businesses. It is anticipated that the first payments made under the scheme will be received by businesses by early June.
For more details, contact your local authority who will make their own funding decisions on applications. The deadline for applying for the grant is 8th June 2020.