Business grants update - 28th May 2021
Restart grants: Applications are open. For further details and to apply see Restart Grants.
Coronavirus Support Grant Schemes
The below schemes are subject to the State Aid Rules.
Grant Scheme Applications are currently accepted for the following schemes:
- Additional Restrictions Grant (ARG) - For businesses that do not pay Business Rates to Harrow Council because for example they pay rates with their rent to their landlord and meeting the qualifying conditions.
Following the outbreak of the Coronavirus, the European Commission has approved schemes to aid businesses affected by the Coronavirus outbreak. This is on the basis of their Temporary Framework, including the Covid-19 Temporary Framework measure for the UK.
The maximum level of aid that a company may receive under section 3.1 of the Temporary Framework is €800,000. Alternatively, €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 measures under the terms of the European Commission’s Temporary Framework. For aid for uncovered fixed costs under Section 3.12 of the Temporary Framework, the maximum level of aid is €3 million.
The Euro equivalent of the Sterling aid amount is calculated using the Commission exchange rate applicable on the date the aid is offered.
Any aid provided under this measure will be relevant if you wish to apply, or have applied, for any other aid granted based on the European Commission’s Temporary Framework.
You will need to declare this amount to any other aid awarding body who requests information from you on how much aid you have received. You must retain this letter for four years after the conclusion of the UK’s transition from the EU and produce it on any request from the UK public authorities or the European Commission.
Aid may be granted to undertakings that were not in difficulty on 31 December 2019 but that faced difficulties or entered in difficulty thereafter as a result of the Covid-19 outbreak. This is within the meaning of Article 2(18) of the General Block Exemption Regulation 30.
This aid is in addition to any aid that you may be have received under the De Minimis regulation allowing aid of up to €200,000 to any one organisation over a three fiscal year period (i.e. your current fiscal year and previous two fiscal years), and any other approved aid you have received under other State aid rules, such as aid granted under the General Block Exemption Regulation. Aid for uncovered fixed costs under Section 3.12 of the Temporary Framework shall not be cumulated with other aid for the same eligible costs.
Undertakings in Difficulty Assessment
Source: Section 2(18) General Block Exemption Regulations
(18) ‘undertaking in difficulty’ means an undertaking in respect of which at least one of the following circumstances occurs:
(a) In the case of a limited liability company (other than an SME that has been in existence for less than three years or, for the purposes of eligibility for risk finance aid, an SME within 7 years from its first commercial sale that qualifies for risk finance investments following due diligence by the selected financial intermediary), where more than half of its subscribed share capital has disappeared as a result of accumulated losses. This is the case when deduction of accumulated losses from reserves (and all other elements generally considered as part of the own funds of the company) leads to a negative cumulative amount that exceeds half of the subscribed share capital. For the purposes of this provision, ‘limited liability company’ refers in particular to the types of company mentioned in Annex I of Directive 2013/34/EU (1) and ‘share capital’ includes, where relevant, any share premium.
(b) In the case of a company where at least some members have unlimited liability for the debt of the company (other than an SME that has been in existence for less than three years or, for the purposes of eligibility for risk finance aid, an SME within 7 years from its first commercial sale that qualifies for risk finance investments following due diligence by the selected financial intermediary), where more than half of its capital as shown in the company accounts has disappeared as a result of accumulated losses. For the purposes of this provision, ‘a company where at least some members have unlimited liability for the debt of the company’ refers in particular to the types of company mentioned in Annex II of Directive 2013/34/EU.
(c) Where the undertaking is subject to collective insolvency proceedings or fulfils the criteria under its domestic law for being placed in collective insolvency proceedings at the request of its creditors.
(d) Where the undertaking has received rescue aid and has not yet reimbursed the loan or terminated the guarantee or has received restructuring aid and is still subject to a restructuring plan.
(e) In the case of an undertaking that is not an SME, where, for the past two years:
Further details on State Aid can be found at www.gov.uk/guidance/state-aid