The Council has already paid out £77m in grants since the start of the Coronavirus pandemic providing a vital lifeline to around 5,000 businesses in Gateshead facing unprecedented challenges as a result of trading restrictions and social distancing measures.
To support businesses impacted by the recent spread of the Omicron variant, the Council has allocated Additional Restrictions Grant to support hospitality and leisure businesses and direct suppliers to hospitality and leisure businesses with ongoing fixed commercial property overheads that have been severely impacted but have not been eligible to access grant funding since 30 December 2021, subject to satisfying all other qualifying criteria.
Payment to qualifying hospitality and leisure businesses will be prioritised. Applications from direct suppliers to hospitality and leisure businesses will join a reserve list and payment of grant will be subject to the availability of funding.
Resources are limited. This means we cannot guarantee that we will be able to provide a grant to every business that meets the criteria.
The Additional Restrictions Grant will close to new applications on 28 February 2022 or once all funds are committed.
Eligibility
Hospitality and leisure businesses and direct suppliers to hospitality and leisure businesses that have not been able to apply for a COVID19 related cash grant since 30 December 2021 may now apply to this scheme if they meet all the other eligibility criteria set out in this guidance.
For the purposes of this scheme hospitality and leisure businesses are defined as:
- Hospitality definition: a business whose main function is to provide a venue for the consumption and sale of food and drink. Takeaways are excluded from this definition.
- Leisure definition: a business that provides opportunities, experiences and facilities, in particular for culture, recreation, entertainment, celebratory events, days and nights out, betting and gaming. Note: Gyms, dance and fitness studios and sports businesses where physical exercise or training is conducted on an individual basis or group basis are excluded from the definition of leisure.
- Accommodation definition: a business whose main lodging provision is used for holiday and travel. Self-catering and accommodation providers must be registered with the council.
Retail and personal care businesses are not in the scope of this grant.
Businesses eligible to apply must:
- have been trading on 30 December 2021, and
- be located in the borough of Gateshead, and
- occupy commercial premises, and
- be able to demonstrate the severe impact on the business due to the COVID19 restrictions, including a significant fall in income
Ineligible businesses include:
- Businesses eligible for cash grants from any other COVID related scheme. This includes the Omicron, Hospitality and Leisure Grant and any other Additional Restrictions Grant funded scheme.
- Businesses without commercial premises and unable to demonstrate ongoing fixed commercial property overheads.
- Self-catering and accommodation providers not registered with the council.
- Businesses that are in financial difficulty, in administration, are insolvent or where a striking-off notice has been made.
- Business that have already received the maximum level of public subsidy permissible.
The Council will not approve or make payment of a further grant to a business that has already received a grant or partial grant passed on by a landlord under one of the schemes mentioned above.
Grant awards
There are limited funds available and it is expected that there will be a high level of demand for aid through the scheme.
If your business is eligible, you'll receive a one-off grant payment of £2,667.
Payments will be made directly to approved recipients' bank accounts by electronic transfer.
By accepting the grant payment, the business confirms that they are eligible for the grant scheme, including that any payments accepted will be subject to subsidy control requirements.
Subsidy allowances
The EU State aid rules no longer apply to subsidies granted in the UK following the end of the transition period, which ended on 31 December 2020. Nevertheless, the United Kingdom remains bound by its international commitments, including subsidy obligations set out in the Trade and Cooperation Agreement (TCA) with the EU.
COVID-19 business grants are provided under one of the following subsidies: Small Amounts of Financial Assistance Allowance, the COVID-19 Business Grant Allowance and the COVID-19 Business Grant Special Allowance.
Small Amounts of Financial Assistance Allowance enables an applicant to receive up to a maximum allowance of 325,000 Special Drawing Rights, which is the equivalent of £335,000 as at 2 March 2021, over any three consecutive fiscal years.
Where the Small Amounts of Financial Assistance Allowance has been reached, grants may be paid under the COVID-19 Business Grant Allowance. For the purposes of these scheme rules, this allowance is £1,900,000. This allowance includes any grants previously received under the COVID-19 business grant schemes and any State aid previously received under the European Commission's Temporary Framework. This may be combined with the Small Amounts of Financial Assistance Allowance to equal £2,235,000.
Where an applicant has reached its limit under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, it may be able to access a further allowance of funding under these scheme rules of up to £10m subject to certain conditions.
Visit the Gov.uk website (opens new window) for full details.
Applicants will be required to declare they are not an undertaking in difficulty.
Other information
The Council reserves the right to vary the terms or close the scheme at any time, and without notice, should it be necessary to do so.
Grant income received by a business is taxable therefore funding paid under this scheme will be subject to tax. Only businesses which make an overall profit once grant income is included will be subject to tax.
The Government and the Council will not accept deliberate manipulation and fraud and any business caught falsifying their records to gain grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error.
All qualifying applications will be subject to a pre-payment check through the National Fraud Initiative prior to approval.
The Council does not accept any liability for any issues that may arise for businesses because of applying for, receiving, or not receiving grant payments under this scheme.
Enquiries about the scheme can be emailed to [email protected].
Grant awards will be made to applicants satisfying the above eligibility criteria subject to the availability of resources. The scheme will close to new applications on 28 February 2022 or once all funds are committed.
There is no appeals process.
