To ensure that the small businesses are not burdened by the business rates, the government provides for small businesses a scheme called, Small Business Rate Relief (SBRR) and similar reliefs to SMEs. To support the small businesses covered by SBRR, Rural Rate Relief (RRR), and tapered relief, the government announced to provide a one-off cash grant of £3,000 to around 700,000 businesses to help them meet their on-going business costs. However, in Chancellor Rishi Sunak`s 17th March dated announcement, this grant was increased to £10,000 from £3,000.
Eligibility for SBGF
Businesses eligible for SBGF are those, which satisfy ALL of the following conditions:
- They are based in England.
- They occupy property.
- They are eligible for Small Business Rate Relief (SBRR) or Rural Rate Relief (RRR) on 11 March 2020.
Note that changes made to a business’ rateable value or rating assessment after 11 March 2020 will not affect eligibility.
Following businesses are NOT eligible for SBGF:
- Properties occupied for :
- personal uses, such as private stables and loose boxes, beach huts, and moorings.
- Car parks and parking spaces.
- Businesses :
- which were in liquidation as of the 11 March
- which was dissolved. (Find out more about reinstating a dissolved business here.)
Amount of grant
Businesses, eligible for a grant under this scheme shall receive an amount of £10,000 as a grant.
Features of Small Business Grant Scheme
- Taxation of grant: The allowance is subject to tax. However, it will be taxable only if businesses make an overall profit once grant income is included.
- The number of grants: The eligible business is one grant per property.
- Businesses cannot receive both SBGF and RHLG on the same property. They have to choose either of them if they are eligible for both the grants.
- The recipient for the grant: The grant will be disbursed to the person who according to the billing authority’s records were the ratepayer for the property on the 11 March 2020.
How to apply for Small Business Grant?
Businesses eligible for the business grants will be contacted by their local authority, though some local authorities have decided to operate an application process. You can check out the website of your local authority or contact them to find out how it works in your area.
Click here to find out your local authority and its website address.
Further Reading: Retail, Hospitality and Leisure Grant
