Guidance

Check if you're eligible for the coronavirus Local Restrictions Support Grant (for open businesses)

The Local Restrictions Support Grant (LRSG (Open)) supports businesses that have been severely impacted due to temporary local restrictions.

From:
Department for Business, Energy & Industrial Strategy
Published
12 November 2020
Last updated
8 March 2021 — See all updates

This guidance was withdrawn on

The Local Restrictions Support Grant (Open) closed to new applications on 31 March 2021. If you haven’t received your payment by 30 April 2021 please contact your local council.

Applies to England

Businesses that have not had to close but which have been severely impacted due to local Tier 2 or Tier 3 restrictions may be eligible for LRSG (Open).

Eligible businesses may be entitled to a cash grant from their local council for each 14 day period under local restrictions.

Local councils have the discretion to provide grant funding for businesses under this scheme. They will use their discretion in identifying the right businesses to receive this funding, based on their application process.

Application deadline

The deadline to apply for the LRSG (Open) scheme is 31 March 2021.

Eligibility

Your business may be eligible if it:

  • is based in England
  • is in an area subject to Tier 2 or Tier 3 local restrictions since 1 August 2020 and has been severely impacted because of the local restrictions
  • was established before the introduction of Tier 2 or Tier 3 restrictions
  • has not had to close but has been impacted by local restrictions

Local councils have the freedom to determine the precise eligibility criteria for these grants. However, we expect the funding to be targeted at hospitality, hotel, bed & breakfast and leisure businesses.

Businesses excluded from the fund

You cannot get funding if:

  • your business was established after the introduction of Tier 2 or Tier 3 restrictions in your local council area
  • your business is in administration, insolvent or has been struck off the Companies House register
  • you have exceeded the permitted subsidy limit

You must notify your local council if your situation changes and you no longer meet the eligibility criteria. For example, you become insolvent.

Subsidy allowance

The new domestic subsidy allowance for the COVID-19 business support grants took effect on 4 March 2021. Applications made prior to that date are subject to the previous rules.

This scheme is covered by 3 subsidy allowances:

  • Small Amounts of Financial Assistance Allowance – you’re allowed up to £335,000 (subject to exchange rates) over any period of 3 years
  • COVID-19 Business Grant Allowance – you’re allowed up to £1,600,000
  • COVID-19 Business Grant Special Allowance - if you have reached your limits under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, you may be able to access a further allowance of funding under these scheme rules of up to £9,000,000, provided certain conditions are met

Grants under these 3 allowances can be combined for a potential total allowance of up to £10,935,000 (subject to exchange rates).

What you get

Local councils are best placed to determine local needs for supporting recovery. They will exercise their local knowledge and discretion relevant to their economic need to provide grant funding.

The grant will be based on the rateable value of the property on the date of the start of the local restrictions. We anticipate local councils will provide funding under the following tiers, unless there is a local need to deviate.

If your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of up to £467 for each 14 day period.

If your business has a property with a rateable value over £15,000 and less than £51,000, you may be eligible for a cash grant of up to £700 for each 14 day period.

If your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of up to £1,050 for each 14 day period.

In the event of national restrictions being introduced, LRSG (Open) will cease to apply, as relevant businesses will receive funding from either the:

How to apply

Visit your local council’s website to find out how to apply.

Find the website for your local council.

Updates to this page

Published 12 November 2020
Last updated 8 March 2021 + show all updates

  1. Grant scheme closing date and details of new subsidy allowance confirmed.

  2. The subsidy control / state aid conditions for this scheme have not changed following the end of the transition period on 31 December 2020: more information will be available shortly.

  3. Guidance amended to reflect UK’s updated state aid agreement with the EU Commission.

  4. Payment period changed from 28 to 14 days.

  5. First published.

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