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COVID-19 Business Support Grants:

Derbyshire Dales Discretionary Grant Fund Guidance

FINAL CALL FOR APPLICATIONS 10.07.2020

Introduction

1. This guidance sets out the criteria under which small and micro businesses will

qualify to make an application to the Derbyshire Dales Discretionary Grant

Fund. The Fund widens access to support to businesses struggling to

survive due to the Coronavirus shut down but unable to access other

Government COVID related grant schemes.

2. The Fund is aimed at certain small and micro businesses which: are not eligible

to access the Small Business Grant Fund (SBGF) and the Retail Hospitality and

Leisure Grant (RHLG); have high ongoing, fixed property-related costs and can

demonstrate that they have suffered a significant fall in income due to COVID-

19. Derbyshire Dales District Council is responsible for administering the

Discretionary Grant Fund.

3. This final call for applications to the Discretionary Grant Fund extends the

eligibility criteria to include local, independent small and micro

businesses with high, ongoing fixed premises costs occupying

business property with a combined rateable value or annual rent below

£101,000. To support the phased re-opening of the economy, priority will

be given to businesses required to close and unable to trade during

the shutdown, specifically pubs and restaurants, hotels and caravan

sites and local visitor attractions.

4. Applications from other local small and micro businesses (occupying

business property with a combined rateable value or annual rent below

£101,000) with high, ongoing fixed property-related costs experiencing

significant disruption due to COVID-19 will also be considered, with

priority given to businesses in manufacturing and engineering. See

section 16 for further details of the priorities under the final call.

5. Please note applicants (successful or unsuccessful) for Discretionary Grant

under the previous call for applications are not eligible to re-apply. Eligible

applications received under the previous call from businesses occupying

business property with a combined rateable value or annual rent below

£101,000 will be considered under this final call without the need for re-

submission.

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Scope of the Fund

6. Under the guidance issued to the District Council by Government it has been

determined that the Fund is aimed at:

Small and micro businesses, including any linked or partner

enterprises, as defined in Section 33 Part 2 of the Small Business,

Enterprise and Employment Act 2015 and the Companies Act 2006

Businesses with high ongoing fixed property-related costs

Businesses which can demonstrate that they have suffered a

significant fall in income due to the COVID-19 crisis

Businesses which occupy property, or part of a property, with a

rateable value or annual rent or annual mortgage payments below

£51,000 (businesses that would otherwise meet the above Government

criteria but have a combined rateable value or annual rent below

£101,000 may apply under the Local Discretion Priorities – see section

16).

7. To be a small business, under the Companies Act 2006, a business must

satisfy two or more of the following requirements in a year:

- Turnover: not more than £10.2 million

- Balance sheet total: not more than £5.1 million

- Number of employees: a headcount of staff of less than 50

8. To be a micro business, under the Companies Act 2006, a business must

satisfy two or more of the following requirements:

- Turnover: not more than £632,000

- Balance sheet total: not more than £316,000

- Number of employees: a headcount of staff of not more than 10

9. Government has also asked local authorities to prioritise certain types of

businesses for support from the Discretionary Grant Fund. These are

retained in section 16.

Core Eligibility Criteria

10. To be eligible to apply for a grant under the Derbyshire Dales Discretionary

Grant Fund, a small or micro business (as defined above) must:

be based in the Derbyshire Dales

have been trading on 11 March 2020

trade from premises used wholly or mainly for business purposes

be able to evidence relatively high ongoing fixed building costs

including: rent; rates (where applicable); premises insurance;

utilities and commercial mortgage interest payments:

- businesses occupying business property with a combined

rateable value or annual rent below £51,000 must be able to

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evidence fixed property costs of at least £2,400 per annum to

be eligible to apply

- businesses occupying business property with a combined

rateable value or annual rent of £51,000 or greater but below

£101,000 must be able to evidence fixed property costs of at

least £25,000 per annum to be eligible to apply

be able to evidence a significant reduction in turnover relative to the

size of the business due to the impact of COVID-19:

- all businesses must be able to demonstrate a reduction in

turnover of 20% or more to be eligible to apply.

Applications must satisfy these core criteria in order to be assessed.

11. Small or micro businesses will also be ineligible to apply if they:

o have received cash grants from the following central Government

COVID related schemes:

- Small Business Grant Fund

- Retail, Hospitality and Leisure Grant

- The Fisheries Response Fund

- Domestic Seafood Supply Scheme

- The Zoos Support Fund

- The Dairy Hardship Fund

o are in administration, are insolvent or where a striking-off notice

has been made (at the time of application)

o were an undertaking in difficulty on 31 December 20191

12. Businesses that have previously been unable to apply for a grant in their own

right as they do not have a separate rating assessment may now apply to this

Fund if they meet all of the other eligibility criteria.

13. Businesses who have applied for the Coronavirus Job Retention Scheme,

Business Interruption and Bounce Back Small Business Loan schemes are

eligible to apply to this Fund. Businesses who are eligible for the

Government’s Self-Employment Income Support Scheme are eligible to

apply to the Discretionary Fund as well.

14. As with all COVID-19 Business Support Grants, funding assistance from the

Discretionary Grant Fund is subject to State Aid rules – see section 38.

The District Council’s Approach

15. The Discretionary Grant Fund is intended to fill gaps within the current

Government COVID related grant schemes and support businesses with

high ongoing fixed property costs.

1 within the meaning of Article 2(18) of the General Block Exemption Regulation

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16. The District Council has been allocated limited funds from Government and will

not be able to support every business within the general scope of the

Fund. Therefore, in line with Government guidance and applying local

discretion, the District Council’s final call for applications will prioritise the

following types of businesses for support (retaining Government priorities and

further extending local discretion):

National Priorities:

Small or micro businesses operating from shared offices or other

flexible workspaces without their own business rates assessment –

this includes: managed office / workspace, mills and units in industrial

estates and business parks

Regular market traders i.e. market traders based in the Derbyshire

Dales, trading most days of the week (prior to COVID-19 restrictions)

at weekly stall markets or from established units, with fixed building

costs including regular rent; and other micro businesses operating

under licence from premises within District Council landholdings

without their own independent business rates assessment

Bed & Breakfast accommodation registered as food businesses with

the District Council which pay Council Tax instead of business rates

Charity properties in receipt of charitable business rate relief which

would otherwise have been eligible for Small Business Rate Relief or

Rural Rate Relief (i.e. charities with a single premise, with a rateable

value of less than £15,000) if they did not claim 100% charity rate relief.

Charities must be local i.e. a charity which operates within the

Derbyshire Dales and whose charitable objects primarily benefit

residents of the Derbyshire Dales and is not affiliated to a national

charitable organisation. Applications from local charities occupying

business property with a combined rateable value or annual rent below

£51,000 may also be considered.

Local Discretion Priorities:

Small and micro businesses beyond the Retail, Hospitality and

Leisure sectors ineligible under other COVID related grant schemes

occupying business property with a combined rateable value or

annual rent below £51,000 (this includes businesses in the supply

chain to the visitor economy sector)

Small and micro businesses2 required to close and unable to trade

(to any extent) during the shutdown occupying business property with

a combined rateable value or annual rent below £101,000. The

following businesses shall be considered as priority: pubs and

restaurants, hotels and caravan sites and local visitor attractions.

Applications from businesses that are part of national chains or

franchises will not be considered

2 Only businesses eligible for the Expanded Retail Discount will be considered

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Other small and micro businesses with high, ongoing fixed business

property-related costs able to evidence significant disruption due to

COVID-19 occupying business property with a combined rateable

value or annual rent below £101,000. Businesses in the following

sectors shall be considered as priority: manufacturing and

engineering. Applications from businesses that are part of national

chains or franchises will not be considered

Self-Catering accommodation providers with accommodation

qualifying as Furnished Holiday Lets (FHLs with a HMRC Tax Return

Self-Assessment 105 declaration) on 11 March 2020 which pay

Council Tax instead of business rates where this is the owner’s

primary source of income.

17. In exceptional cases, applications from local independent businesses that

do not fall into the above categories, but in the view of the District Council

can demonstrate significant hardship (due to COVID-19) relating to high,

ongoing fixed business property-related costs, may be considered. This

category will only be considered if there are adequate remaining funds once

the other categories have been assessed.

18. All required supporting evidence must be provided. Incomplete applications will

not be considered. If you are uncertain as to your eligibility, please contact us

prior to making an application.

19. For the avoidance of doubt, the following types of businesses will be

ineligible to apply to the Discretionary Grant Fund (taking account of the

primary aims of the Fund):

Business Type Casual market stallholders and mobile and festival catering outlets without fixed

building costs and not paying a regular rent e.g. those attending festivals and events

Care homes

Landlords and property developers

Primary agricultural production (with the exception of dairy farmers not eligible for the Dairy Hardship Fund with an average reduction in milk price between 20%-25%)

B&Bs not registered as a food business with Environmental Health

Home offices/workers

Businesses which have received a Discretionary grant in another district

Financial services e.g. banks, building societies, cash points, bureaux de change, short-term loan providers

Post office sorting offices

GP Practices

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20. Following a review of take up from businesses prioritised in section 16, the

District Council may, at its discretion, consider applications received from

eligible small and micro businesses within the Derbyshire Dales ineligible

for support from other central Government COVID related grants beyond

the priority categories identified should sufficient funding remain available.

Privately run medical services will only be considered in exceptional

circumstances and subject to funding availability.

21. Grants will not be awarded to organisations whose activities are contrary to

the vision and values of the District Council as set out in section 5.4 of the

Council’s Policies for Discretionary Rates Reliefs December 20183.

22. The District Council reserves the right to vary the terms of the Fund at any

time, and without notice, should it be necessary to do so.

Application Process and Levels of Grant

23. The District Council has prepared an on-line application process for the

Fund. This will be the route for all applications (except in exceptional cases

where an applicant does not have internet access).

24. In line with Government guidance, following verification and eligibility

checks, District Council officers will assess applications according to the

following criteria:

no. of employees within the applicant business

level of ongoing fixed costs faced by the business

trading status of the business i.e. whether some trading has

continued, a business has had to close completely or provides

services that are not permitted due to social distancing rules or has not

been able to move to on-line services

scale of impact of COVID-19 losses.

25. In order for the Discretionary Grant Fund to benefit the maximum number and

range of eligible small and micro businesses, the following levels of grant are

proposed:

Grant Levels:

£2,500

£5,000

£7,500

£10,000

£25,000

3 NNDR_Discretionary_Reliefs_Policy_Approved_5_December_2018.pdf

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26. The Government’s expectation is that payments under £10,000 will be

appropriate in many cases and particularly for micro businesses. The

Discretionary Grant Fund has been developed accordingly. The District

Council may, at its discretion, cap the level of grant awarded to applicants

at £10,000 to benefit the maximum number of eligible businesses. Grants of

£25,000 will only be made in exceptional circumstances.

27. One grant will be considered per qualifying business including those with

more than one business property. The business will also need to confirm its

intention to continue trading following any grant award.

28. Eligible applications will be assessed using the following approach:

Impacts Question Answer Score Weighting

a) No. of Employees

Business Size – No. employees (headcount - ex. owner / proprietor)

11-49 3-10 1-2 0

5 3 1 0

3

b) Level of ongoing fixed costs

Annual Business Premises Costs

For property <51k RV:

>£15,001 £15,000-£5,000 <£5,000 For property <£101k RV:

>£75,001 £35,001-£75,000 <£35,000

5 3 1

5 3 1

3

c) Trading status

Impact of COVID-19 on Trading

Closed throughout / no trading

Partial trading / recently opened / restricted to on-line trading

Open throughout / full trading

5

3

1

1

d) Financial impact from COVID-19

Impact on turnover

50%+ down 49%-31% down 30%-20% down

5 3 1

2

Sole or primary source of income

Sole source

Primary source i.e. 50% or more

49%-33%

Less than 33%

5

3

1

0

1

MAX 50

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29. Subject to the application score, level of demand and funding

availability, the level of grant awarded will vary. The highest scoring

applications in each band will be awarded higher levels of grant (unless

extenuating circumstances indicate otherwise - see below). The following

indicative scoring / grant thresholds are proposed:

Score Grant Level

30 or less £2,500 - £7,500

31 to 44 £10,000

45 or more £25,000

30. Under certain circumstances, the District Council may, at its discretion,

adjust the scoring / grant thresholds. These include (but are not limited to):

no grant shall be awarded higher than that which a particular

business would have received if they had been entitled, as a

ratepayer, to Small Business Grant Fund or Retail Hospitality and

Leisure Grant or other COVID related grants

cases where an eligible business has suffered significant disruption

or is facing significant hardship relating to high, ongoing fixed

property-related costs and the failure of the business would have a

significant local economic impact warranting a higher level of grant.

31. The District Council will not approve or make payment of a further grant to a

business that has already received a grant or partial grant passed on by a

landlord under one of the schemes listed in section 11.

32. As a condition of support, businesses awarded discretionary grant in

properties without their own business rates assessment will be required to

apply to the VOA for a rating assessment and register with the District

Council for NNDR (and associated reliefs) where applicable.

33. Should the Fund be oversubscribed the District Council reserves the right

to end the call for applications and only consider those applications received

to this point.

Submission of Applications

34. The District Council will hold an open call for applications and review the

funding position at the end of July 2020. The District Council may close the

call at any time if sufficient eligible applications have been received.

Please note applicants (successful or unsuccessful) for Discretionary Grant

under the previous call for applications are not eligible to re-apply. Eligible

applications received under the previous call from businesses occupying

business property with a combined rateable value or annual rent below

£101,000 will be considered under this final call without the need for re-

submission.

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35. Please be aware that processing may take upwards of 20 working days due

to the level of due diligence we will need to undertake to assess each

application following which payments to successful applicants will

commence. Once the funding is exhausted no further grants will be awarded.

Allocation of Discretionary Funds

36. To ensure that, as far as possible, the Discretionary Grant Fund benefits

the maximum number and range of eligible small and micro businesses

making up the Derbyshire Dales economy (and taking account of the

Government’s approach to targeting certain business sectors), the available

funding will be ring-fenced as follows:

30% to eligible visitor accommodation businesses (not in receipt of

other COVID related grants) which pay Council Tax as defined in the

priorities set out in section 16

70% to the remaining national priorities and areas of local discretion

identified in section 16.

37. The District Council will consider eligible applications received according to

this notional split of funds and determine grant awards accordingly. Ring

fenced sums may be varied at the District Council’s discretion .

State Aid

38. All grants provided under this Fund must be State Aid compliant.

Businesses applying to the Fund are required to confirm that in accepting a

grant payment the business, including any linked enterprises, will not

exceed State Aid limits. Further details can be found here

39. Payments of up to and including £10,000 will be made under the De Minimis

Aid regulation, meaning applicants can receive up to €200,000 of aid over a

three fiscal year period (i.e. your current fiscal year and previous two fiscal

years). Any business in receipt of State Aid must submit a signed State Aid

Declaration letter and their grant claim will not be processed until the letter

is provided.

40. Payments of £25,000 (or £10,000 where the De Minimis threshold has been

reached) will be paid under the COVID-19 Temporary Framework for UK

Authorities scheme under which the maximum level of aid that a company

may receive is €800,000 (€120,000 per undertaking active in the fishery and

aquaculture sector or €100,000 per undertaking active in the primary

production of agricultural products). This is across all UK schemes under

the terms of the European Commission’s Temporary Framework. Recipients

must also declare they were not an undertaking in difficulty on 31 December

2019 (as defined earlier in this guidance) but faced difficulties or entered

into difficulty thereafter as a result of the COVID-19 outbreak. This aid is in

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addition to any aid that you may have received under the De Minimis

regulation.

41. Recipients will need to declare any grant funding awarded to any other aid

awarding body who requests information on how much aid you have

received.

Evidence Required

42. Eligible businesses/charities will be required to demonstrate that they meet

the eligibility criteria for the Fund. To do this, applicants are required to:

provide evidence to demonstrate the financial impact of COVID-19

on the business. This will take the form of filed annual accounts for

previous years, current management accounts (where available),

and bank statements available for the current period i.e. March to

June 2020 and for the equivalent period in 2019 to evidence impact

on turnover

provide evidence of their fixed property-related costs with their

application i.e. evidence of rent payments, rates, commercial

mortgage interest payments, premises insurance, utilities or HMRC

Tax Return Self-Assessment 105 form declaration for FHLs

provide business bank account details for payment purposes

(should their application be successful). Businesses that are eligible

for a grant will be paid the grant directly into their bank accounts

confirm the business complies with the definition of a small or micro

business

confirm the business was trading on 11 March 2020

confirm the business intends to continue trading following any grant

award

confirm that the business has not received any other Government

COVID related grant support

confirm the business was not an undertaking in difficulty on 31

December 2019 and is not in administration, liquidation or in the

process of being dissolved or subject to a striking-off notice

confirm the award of grant would not result in the business,

including any linked enterprises, exceeding the maximum level of

State Aid permissible.

Information provided by businesses will be subject to checks by the

District Council’s Auditor. The District Council reserves the right to

request further evidence to support the application where this is deemed

necessary and not to proceed any further with an application if there is

doubt over the evidence provided.

Decisions

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43. Applications will be determined by District Council Officers using the criteria

set out in this document. A panel of officers will use the criteria and

approach described in this guidance to determine how much grant, if any,

will be awarded. A record will be made of the scoring, the decision and the

grant awarded, or the reasons for rejection. The decision will be notified to

the applicant in writing (email) and where a grant has not been awarded, a

short explanation of the reason will be given.

Appeals Process

44. If you have been informed that your business is not eligible for a

discretionary business support grant and you feel that the decision is wrong,

you can appeal for that decision to be looked at again. Your case will then

be reviewed by a different officer(s) to check that the initial decision was

correct. Details of the District Council’s Appeals process are available here

45. There will be no appeal process for businesses/charities in relation to the

grant amount they are awarded.

Other Important Information

46. Grant income received by a business is taxable therefore funding paid under

the Discretionary Grant Fund will be subject to tax. Only businesses which

make an overall profit once grant income is included will be subject to tax.

47. All grant claims will be processed through a series of checks, including

checks against our business rates database and checks for fraud including

use of the Government Spotlight anti-fraud software and the National Fraud

Initiative database. The District Council reserves the right to verify/put on

hold any application to enable detailed checks to be carried out.

.

48. The Government and the Council will not accept deliberate manipulation

and fraud. Information submitted will be subject to checks by the District

Council’s Auditor at the Council’s discretion. Any suspected fraud cases will

also be investigated by the Auditor. Any business caught 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.

49. The Government guidance on which this document is based has been

subject to change and, as such, this document may also be subject to

change. The District Council does not accept any liability if any of the

changes affect the eligibility of any business for the Discretionary Grant

Fund.

50. In addition, the District 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 Fund.

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51. Enquiries about the Fund can be emailed to

economicdevelopment@derbyshiredales.gov.uk

Privacy Notice

Derbyshire Dales District Council takes your privacy seriously. We will treat all

personal information provided in confidence and store it securely in accordance with

the Data Protection Act 2018 and General Data Protection Regulations.

Your information will be used for the purpose for which it was intended, to provide a

Coronavirus community response.

Your data may be shared with other departments within the Council, other Government

Departments, Councils and third party processors operating on their behalf. We also

share information with other enforcing authorities for the purpose of preventing fraud,

misuse of public funds and any legal or statutory requirements.

For more information on how we process your personal data and your rights as a data

subject, visit www.derbyshiredales.gov.uk