Small Business Grant Fund (SBGF) – Changes from 8 June 2020

The Scottish Government has confirmed the latest changes to the Small Business Grant Fund.

The amendments have been made to enhance accessibility of the scheme.  Businesses typically occupying shared spaces, but who were not the named ratepayer, were previously ineligible for grant funding.  The latest changes to the scheme could enable some of these businesses to claim a grant if certain conditions are met.

A further change amends the cumulative rateable value upper threshold which portfolios of properties must not exceed in order to be eligible.

Both amendments are effective from 8 June 2020.

Tenants and Occupiers

Tenants or occupiers of premises such as shared office spaces, business incubators and shared industrial units for which the landlord is the registered rate payer may be eligible for a single, one-off £10,000 small business grant.

Eligibility for such small businesses is subject to detailed verification criteria but irrespective of the use or rateable value of the property. A tenant/occupier may only receive a single grant.

The finer points are as follows:

• These payments are grants. A grant awarded on a valid application, does not need to be refunded by the recipient 

• To be eligible you must:

• be a registered business or partnership with Companies House
• have a lease signed before 17 March 2020
• employ at least one person (not including the business owner or a partner or director in the business)
• have a business bank account

The date to assess eligibility for all the above conditions is 17 March 2020

• Information provided by an applicant will be verified against other information sources held by their local Council. This will assist with timely application processing, fraud prevention and auditing purposes

• Councils will aim to make payment within 10 working days from receipt of a fully completed application and once all information and evidence in support of an application has been verified. Applications may be subject to delay if incomplete or incorrect details are supplied

• In all applications, ratepayers must disclose the details of previous applications for grant support under this Scheme, or other UK and Scottish Government support schemes, whether the application was approved or otherwise. You will not be eligible to claim this grant if support has already been received through any of the following schemes:

• Small Business Grant Fund
• Retail Hospitality and Leisure Grant Fund
• Pivotal Enterprise Resilience Fund
• Creative, Tourism and Hospitality Enterprises Hardship Fund
• Newly Self-Employed Hardship Fund
• Self-Employed Income Support Scheme
• Third Sector Resilience Fund

• The applicant must submit all necessary supporting information with their application to prevent delays in processing 

• If a grant is awarded on the basis of false or inaccurate information, it may result in arrangements being made to recover the award, and legal proceedings being initiated

The closing date for applications is 10 July 2020.

Cumulative Rateable Value

Since 2 May 2020 ratepayers that hold one or more properties in the Retail, Hospitality, and Leisure (RHL) sector, with a cumulative rateable value (of all RHL and non-RHL properties) of between £35,001 and £51,000 have been eligible for the SBGF for each of their qualifying Retail, Hospitality, and Leisure properties which has an individual rateable value that does not exceed £18,000.

The total cumulative rateable value range has been amended to £35,001 – £500,000, broadening the scope of the Government support.

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

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