Covid Grants

Business Grant Funding

Restart Grant - From 1st April

The Restart Grant will support businesses with a business rates account (hereditaments), that were legally required to close as of 1st April 2021 and fall within the non-essential retail, hospitality, accommodation, leisure, personal care and gym sectors.  This is a mandatory scheme and the amounts paid are not at the discretion of the Council, rather the Government.

There are two strands to the Restart Grant scheme. Depending on the business type, this will determine which strand any eligible business falls into. Businesses cannot receive grant payments under both Strand 1 and 2.

Grants of the following will be paid:

Strand 1

The Restart Grant will support non-essential retail premises with one-off grant payments of up to £6,000.

  • Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £15,000 or under on 1st April 2021 will receive a payment of £2,667.
  • Businesses occupying hereditaments appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on 1st April 2021 will receive a payment of £4,000.
  • Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £51,000 or over on 1st April 2021 will receive a payment of £6,000.

Strand 2

The Restart Grant will also support hospitality, accommodation, leisure, personal care and gym business premises with one-off grants payments of up to £18,000.

  • Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £15,000 or under on 1 April 2021 will receive a payment of £8,000.
  • Businesses occupying hereditaments appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on 1 April 2021 will receive a payment of £12,000.
  • Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £51,000 or over on 1 April 2021 will receive a payment of £18,000.

How to apply for the Restart Grant Scheme

If you believe that your business is eligible for one of the above grant strands, then you will be required to re-apply by completing the Restart Grant form in your My Erewash account. Failure to complete the application fully will result in a delay to payments being made or no payments at all.  Please read each question carefully and answer appropriately.

Businesses operating more than one premises that may be eligible for the Restart Grant must submit a separate application for each premises.

Please note, applications for this grant closed on 30 June 2021. Final payments to all those eligible to be completed by 31 July 2021.

Sign in/Register for a My Erewash Business account (opens in a new window) 

Business Support Package for January Lockdown

Closed Business Lockdown Payment (CBLP) – One off January Payment

In addition to the Local Restrictions Grants, the Closed Business Support Payment was introduced to support businesses with a business rates account that fall within the Non Essential Retail, Personal Care, Hospitality, Leisure and Sports Facility sectors that have been legally required to close during National Lockdown. 

This grant scheme will be paid at the rates below.

  • £4,000 for businesses with a rateable value of £15,000 or under
  • £6,000 for businesses with a rateable value between £15,001 and £51,000
  • £9,000 for businesses with a rateable value of over £51,000

This payment will be in addition to the Local Restrictions Lockdown Grant (Closed) Addendum: 5 January payment.

Both grants will be paid together as a one off payment for the initial period of 42 days from the national lockdown start date of 5 January 2021.

Closed Business Lockdown Payment – 5 January 2021 to 15 February 2021
Rateable Value ThresholdClosed Business Lockdown Payment                  Closed Addendum: 5 JanuaryTotal Payment (42 day period)

£1 - £15,000

£4,000£2,001£6,001

£15,001 - £50,999

£6,000£3,000£9,000

£51,000 upwards

£9,000£4,500£13,500

Please note, the application process for the Closed Business Support Grant along with the Closed addendum 5 January payment is now closed. Final payments to all those eligible were completed by 14 May 2021.

Local Restrictions Support Grant Closed Addendum, Tier 4 – 31 December 2020 to 4 January 2021 and National Lockdown

Tier 4 payments are paid under the Closed Addendum scheme. They will be pro-rata for the short period that Erewash Borough Council were placed in this Tier before the National Lockdown commenced. The amounts payable to businesses will be the same in Tier 4 and National Lockdown.

This will be paid under the Local Restrictions Grants previously used. Payments for Closed addendum Tier 4 are paid on the basis of the amounts below.

Table shows ratable value and the relevant thresholds and payments to businesses.

Rateable Value Threshold

Grant amount based on 14 days Grant amount based on 5 day Tier 4 period (31 December 2020 - 4 January 2021)

£1 - £15,000

£667£238

£15,001 - £50,999

£1,000£357

£51,000 upwards

£1,500£536

Please note, the application process for the Closed Addendum Tier 4, 31 December 2020 to 4 January 2021 payment is now closed. Final payments to all those eligible were completed by 14 May 2021.

Extension To January Package

The Closed Addendum scheme has been extended to eligible local businesses for the period 16 February to 31 March 2021. 

If you have already received a Local Business Support Grant (Closed Addendum) from the Council, then you do not need to complete a further application at this moment in time. If you are eligible you will receive an email when the payment has been processed.

The allocation amounts are:

  • Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £15,000 or under on the date of the commencement of the widespread national restrictions will receive a payment of £2,096 per 44-day qualifying restriction period.
  • Businesses occupying hereditaments appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on the date of the commencement of the widespread national restrictions will receive a payment of £3,143 per 44-day qualifying restriction period.
  • Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £51,000 or above on the commencement date of the widespread national restrictions, will receive £4,714 per 44-day qualifying restriction period.

Further information regarding this grant can be found on Gov.uk (opens in new window).

If your business is mandated to close and you have received a previous Closed Addendum grant there is no need to reapply for the 44 day extension. This will be awarded automatically. An email will be sent when these have been awarded.

Please note, the application process for the extension payment is now closed. Final payments to all those eligible to be completed by 30 June 2021.

Sign in/Register for a My Erewash Business account (opens in a new window) 

Local Restriction Support Grant (Open) Tier 2 or 3

The Local Restrictions Support Grant (Open) is a scheme designed to support businesses that were affected when entering Tier 2 local restrictions in Erewash on 17 October 2020.

'Open' means that your business is able to remain open but has been severely impacted by our local area entering Tier 2 or 3.

Awards will be for each 28-day period that the area remains in Tier 2 or in Tier 3 (or awarded on a pro-rata basis if the period is less than 28 days). Please note, that this scheme is suspended from 5th November 2020 when England entered national COVID-19 restrictions. Erewash entered Tier 3 restrictions with effect from 2nd December 2020.

Businesses providing the following services are eligible to apply for the grant:

  • Hospitality, Leisure, Hotel, Bed & Breakfast; and
  • Have a business premises, Business Rates account and a rateable value.

Awards will be based on the business premise rateable value as follows:

  • Grants of up to £934 per 28-day period for businesses occupying hereditaments with a rateable value of exactly £15,000 or under on the date of the commencement of the local restrictions.
  • Grants of up to £1,400 per 28-day period for businesses occupying hereditaments with a rateable value over £15,000 and less than £51,000 on the date of the commencement of the local restrictions.
  • Grants of up to £2,100 per 28-day period for businesses occupying hereditaments with a rateable value of exactly £51,000 or above on the date of the commencement of the local restrictions.

Please note, the application process for the 'Open' scheme is now closed. Final payments to all those eligible were completed by 14 May 2021.

Local Restrictions Support Grant (Closed) Tier 3

The Local Restrictions Grant (Closed) scheme is to support businesses that that have been legally required to close as a result of Erewash entering Tier 3 on 2nd December 2020. 

'Closed' means that your business is mandated to remain closed in Tier 3.

This scheme will be administered in line with Government requirements.

  • For businesses that have a Business Rates account and were legally required to close on 2nd December 2020.
  • Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £15,000 or under on the date of the commencement of the local restrictions will receive a payment of £667 per 14-day qualifying restriction period.
  • Businesses occupying hereditaments appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on the date of the commencement of the local restrictions will receive a payment of £1,000 per 14-day qualifying restriction period.
  • Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £51,000 or above on the commencement date of the local restrictions, will receive £1,500 per 14-day qualifying restriction period.

Please note, the application process for the 'Closed' scheme is now closed. Final payments to all those eligible were completed by 14 May 2021.

Local Restriction Support Grant (Closed) Addendum

The closed addendum scheme runs when local restrictions are imposed by the government at Tier 4 or for any National Lockdown period (for example 5th November to 2nd December 2020).

'Closed Addendum' is simply what the Government has called the grant where businesses are mandated to close during Tier 4 or national lockdown restrictions. 'Closed Addendum' does not mean the scheme is closed or that you can no longer apply.

Businesses providing the following services are eligible to apply for the 'Closed Addendum' grant:

  • Non-Essential Retail
  • Leisure
  • Personal Care
  • Sports Facilities
  • Hospitality Businesses

Businesses must have been forced to close for the national lockdown or Tier 4 period and have a rateable value.

To receive funding you must:

  • Have made the council aware that you occupied a property directly before the restrictions were put in place, and pay business Rates to Erewash Borough Council (if in receipt of rate relief you are also eligible).
  • Be closed to customers or have adapted your business to offer a food takeaway, collection or delivery service where you normally provide substantive seated restaurant or bar service.

The Health Protection (Coronavirus, Restrictions) (England) (No. 4) Regulations 2020 (SI 2020/1200) outline businesses that are required to close, these are listed together with further information on Gov.uk (opens in new window).

There are a number of exclusions which are:

  • Businesses that have been able to stay open because they are deemed to be offering 'essential retail' or guest houses and hotels that are able to stay open to offer overnight accommodation to key workers
  • Businesses whose substantive business is a take away
  • Businesses that are able to continue to trade because they do not depend on providing direct in-person services from premises and can operate their services effectively remotely (such as accountants, solicitors)
  • Businesses that have chosen to close but not been required to will not be eligible for this grant. This includes business premises which were already closed directly before the restrictions were imposed
  • Businesses which have already reached the state aid limit
  • Business which are subject to insolvency or striking off action are not eligible for funding under this scheme
  • Specific businesses subject to national closures since 23 March 2020 will not be eligible for this funding. This includes nightclubs and sexual entertainment venues where grants will be paid under a separate scheme for nationally mandated business closures

Funding is again based on your rateable value and the following thresholds and payments will apply:

Table shows ratable value and the relevant thresholds and payments to businesses.

Rateable Value Threshold

Grant amount based on 28 day National Lockdown Period, 5th November to 2nd DecemberGrant amount based on 14 day Tier 4 restrictions

£1 - £15,000

£1,334£667

£15,001 - £50,999

£2,000£1000

£51,000 upwards

£3,000£1500

Please note, the application process for the 'Closed Addendum' scheme is now closed. Final payments to all those eligible were completed by 14 May 2021.

Additional Restrictions Grant (ARG) 

The government has provided local authorities with additional funding to help businesses which, while not legally forced to close, are nonetheless severely impacted by the restrictions put in place to control the spread of Covid-19 (businesses which supply the retail, hospitality, and leisure sectors, or businesses in the events sector) and businesses outside the business rates system, which are legally required to close.

Grant funding is available for eligible Micro and Small businesses who were trading on the 4 November 2020 in Erewash and have seen a reduction in turnover of 20% or more. Businesses that are eligible for the scheme will be entitled to receive a one off grant payment for the 28 days of the national restrictions from 5 November 2020 to 2 December 2020.

Eligible business trading on 4 January 2021 who have seen a reduction in turnover of 20% or more can also apply for a grant covering the 42 days of the national lockdown period from 5 January 2021 to 15 February 2021. This has then been extended for the period 16 February 2021 to 11 April 2021. See Additional restrictions grants guidance notes.

The grant application process for the 5 November 2020 to 2 December lockdown period has now closed. 

The grant application process for the 5 January 2021 to 15 February 2021 lockdown period has now closed.

The grant application process for the 16 February 2021 to 11 April 2021 lockdown period has now closed. 

ARG Phase 2 - 12 April to 30 June 2021

Phase 2 of ARG funding is being made available to businesses which are not eligible for the Restart Grant, but which are nonetheless experiencing a severe impact on their business. This scheme is to support the recovery of our local business community as national restrictions are gradually lifted and will replace the current Additional Restrictions Grants Phase 1.

Phase 2 scheme will support businesses in the non-essential retail, hospitality, leisure, personal care and accommodation sectors and associated supply chain industries with a one-off grant, to reopen safely as COVID-19 restrictions are lifted.

A single one-off grant payment will be made automatically to those businesses who have previously qualified for and received the phase 1 ARG grant but meet the criteria for Phase 2.

Businesses who have not previously applied for ARG will be considered on application and must complete application form.

Businesses who qualify for the Restart grant for ratepayers will not be eligible for the Phase 2 ARG Grant. See Additional Restrictions Grant Phase 2 guidance notes for further information and payment amounts.

The ARG Phase 2 scheme is now closed. Grants will be awarded on a first-come-first served basis until funding has been exhausted, the decision of the awards panel will be final, and there will be no appeals process.

 Sign in or Register for a My Erewash Business account (opens in a new window)

Christmas Support Payment (CSP) for wet-led pubs

  • A one-off £1,000 Christmas grant for 'Wet-led pubs' in Tiers 2 and 3 for all or part of the period between 2 and 29 December 2020.
  • Pubs that mainly serve alcohol rather than food will be eligible for the Christmas Support Payment.
  • The payment will be a one-off for December and will be paid on top of the existing Local Restriction Support Grants for businesses.
  • This will cover those in both Tier 2 and 3 that were forced to reduce their operations as a result of the latest regional measures put in place to contain transmission of the virus. 

What is a 'wet-led pub'?

For the purposes of this grant, a wed-led pub is a pub that mainly serves alcohol. A pub under normal circumstance (without local or national restrictions) can be described as:

  • Open to the general public;
  • Allow free entry (other than when the occasional entertainment is provided);
  • Allow drinking without requiring food to be consumed; and
  • Permit drinks to be purchased at a bar

How long will the scheme run for?

This scheme is now closed.

Exclusions to Christmas Support Payment funding

  • The funding is restricted to businesses that are registered for business rates.
  • Businesses in areas moving from Tier 1 to Tier 2 or Tier 3 after 29 December 2020 will not be eligible to receive funding
  • Pubs that derive over 50% of their income from food sales will not be eligible to receive funding through this grant scheme
  • Businesses that have already received grant payments that equal the maximum levels of State aid permitted under the de minimis, the Covid-19 Temporary State Aid Framework and all other UK schemes under the terms of the European Commission’s Temporary Framework will not be eligible to receive funding
  • Businesses that are in administration, insolvent or where a striking-off notice has been made, are not eligible for funding under this scheme
  • Restaurants, cafes, nightclubs, hotels, snack bars, guesthouses, boarding houses, sporting venues, music venues, festival sites, theatres, museums, exhibition halls, cinemas, concert halls and casinos.
  • The grant award is at the discretion of the council, the decision of the council is final, and there is no right of appeal.
  • Some businesses may receive more than one grant where they have more than one eligible rated premises, individual applications need to be made for each premises.

How much can I receive?

The grant is a flat rate of £1,000.

State Aid/Subsidy Control 

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 provided in excess of the Small Amounts of Financial Assistance Allowance may not be granted to applicants that were defined as 'an undertaking in difficulty' on 31 December 2019. In derogation to the above, grants can be granted to micro or small enterprises that were already in difficulty on 31 December 2019 provided that they are not subject to collective insolvency proceedings.

For the avoidance of doubt, grants under the Small Amounts of Financial Assistance Allowance, the COVID-19 Business Grant Allowance and the COVID-19 Business Grant Special Allowance may be combined for a potential total allowance of £10,935,000 (taking into account all grants previously received under the COVID-19 business grants schemes and subject to the exact amount applicable under the Small Amounts of Financial Assistance Allowance using the Special Drawing Right calculator)

An 'undertaking in difficulty' definition:

‘Undertaking in difficulty’ means an undertaking in respect of which at least one of the following circumstances occurs:

  1. In the case of a limited liability company (other than an SME that has been in existence for less than three years) 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, ‘share capital’ includes, where relevant, any share premium.
  2. 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) where more than half of its capital as shown in the company accounts has disappeared as a result of accumulated losses.
  3. Where the undertaking is subject to collective insolvency proceedings or fulfils the criteria for being placed in collective insolvency proceedings at the request of its creditors.
  4. 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.
  5. In the case of an undertaking that is not an SME, where, for the past two years: the undertaking's book debt to equity ratio has been greater than 7.5 and the undertaking's EBITDA interest coverage ratio has been below 1.0.

Previous State Aid Rules

The United Kingdom left the EU on 31 January 2020, nonetheless under the Withdrawal Agreement the State aid rules continue to apply during a transition period, subject to regulation by the EU Commission. The Local Authority must be satisfied that all State aid requirements have been fully met and complied with when making grant payments, including, where required, compliance with all relevant conditions of the EU State aid Regulation, the EU Commission Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak, the approved Covid-19 Temporary Framework for UK Authorities, and any relevant reporting requirements to the EU Commission.

Payments made can be provided under the existing De Minimis rules, provided doing so does not exceed the €200,000 threshold1 to any one organisation over a three-year fiscal period. Payments made where the De Minimis threshold has been reached should be paid under the Covid-19 Temporary Framework for UK Authorities (threshold €800,000).

The amended Temporary Framework enables EU Member States to give up to the nominal value of €800,000 per company (€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 can be combined also with so-called de minimis aid (to bring the aid per company to up to €1 million) and with other specific types of aid. Any business that has reached the limits of payments permissible under the De Minimis, the UK Covid-19 Temporary State Aid Framework, and all other UK schemes under the terms of the European Commission’s Temporary Framework will not be able to receive further grant funding.

Annex B of this guidance contains two sample declarations which Local Authorities may wish to use with either payments under the De Minimis rules or under the Covid-19 Temporary Framework for UK Authorities. Where Local Authorities have further questions about De Minimis or other aspects of State aid law, they should seek advice from their legal department in the first instance.

On 13 October 2020 the European Commission announced further amendments to its State aid Temporary Framework - introducing a new measure enabling further support to companies facing a decline in turnover during the eligible period of at least 30% compared to the same period of 2019 due to the coronavirus outbreak. The support can be provided for up to 70% (90% in case of micro and small companies) of the beneficiaries' fixed costs that are not covered by their revenues or other specified sources, up to a maximum amount of EUR 3 million per undertaking.

The aid under this measure cannot be cumulated with other aid for the same eligible costs and is subject to further conditions set out in the Temporary Framework. The UK Government has notified the European Commission of its intention to use the new provision and must await approval from the European Commission to do so. The Covid-19 Temporary Framework for UK Public Authorities will need to be amended before aid under this new measure may be provided. All Local Restrictions Support Grants guidance documents will be updated to reflect the new provisions if and when they are applied to the LRSG schemes once the UK Government has approval. See announcement on the European Commission website. (opens in a new window)

Tax implications

Grant income received by a business is taxable. The Local Restrictions Support Grant will need to be included as income in the tax return of the business.

Privacy Notice 

For information on how we treat the data you provide to us when applying for a business grant, please see the Covid Business Grants Privacy Notice on our Privacy Notice page