Guidance

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

The Local Restrictions Support Grants (LRSG (Closed) and LRSG (Closed) Addendum: Tier 4) support businesses that have been required to close due to temporary local restrictions.

This guidance was withdrawn on

The Local Restrictions Support Grants (Closed) and (Closed) Addendum: Tier 4 closed to new applications on 31 March 2021. If you haven’t received your payment by 30 April 2021 please contact your local council.

Businesses that were open as usual and were then required to close due to local Tier 2, Tier 3 or Tier 4 restrictions may be eligible for LRSG (Closed) or LRSG (Closed) Addendum: Tier 4.

Eligible businesses are entitled to a cash grant from their local council for each 14 day period they are closed.

Application deadline

The deadline to apply for the LRSG (Closed) and LRSG (Closed) Addendum: Tier 4 schemes is 31 March 2021.

Eligibility

You can apply for a grant if your business is either:

  • in an area of local Tier 2 or Tier 3 restrictions and has been required to close because of local restrictions that resulted in a first full day of closure on or after 9 September
  • in an area of local Tier 4 restrictions and has been required to close because of local restrictions that resulted in a first full day of closure on or after 19 December

You will need to show that your business:

  • is based in England
  • occupies property on which it pays business rates (and is the ratepayer)
  • has been required to close for at least 14 days because of the restrictions
  • has been unable to provide its usual in-person customer service from its premises

For example, this could include pubs and restaurants that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead.

Eligible businesses can get one grant for each non-domestic property within the restriction area.

Businesses excluded from the fund

You cannot get funding if:

  • you can continue to operate during the period of restrictions because you do not depend on providing direct in-person services from your premises (for example, accountants)
  • local restrictions are introduced for less than 14 days or you are closed for less than 14 days
  • you have chosen to close, but have not been required to close as part of local restrictions
  • your businesses has been subject to national closures since 23 March 2020, such as nightclubs (these are eligible for other grant support)
  • your business is in administration, insolvent, subject to a striking-off notice 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.

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

The grant will be based on the rateable value of the property on the first full day of local restrictions.

If your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of £667 for each 14 day period your business is closed.

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 £1,000 for each 14 day period your business is closed.

If your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of £1,500 for each 14 day period your business is closed.

The grant will be extended to cover each additional 14-day period of closure. If your business is closed for 28 days, or 2 payment cycles, it will receive £1,334, £2,000 or £3,000, depending on the rateable value of the property.

How to apply

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

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. Grants are available for businesses required to close due to Tier 4 restrictions.

  4. All Tier 4 businesses required to close will be eligible for grants of up to £1,500 for each 14-day period of closure; the grants will be administered by local authorities. Guidance also amended to reflect UK’s updated state aid agreement with the EU Commission.

  5. First published.