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Folkestone & Hythe Additional Restrictions Grant (ARG)

This grant scheme is fully funded by central government and the funds will be administered by Folkestone & Hythe District Council in accordance with the guidance issued by the Department for Business, Energy and Industrial Strategy (BEIS).

This guidance can be read by clicking here.

Eligibility Criteria

  • Eligible businesses are those that have been forced to close (but where companies are not covered under the Local Restrictions Support Grant (Closed) Scheme) or have been significantly impacted*and have incurred fixed business costs** during the four-week national lockdown from 5 November 2020
  • Businesses are required to have a registered business address, residential address (in the case of sole traders/self employed) or have a presence in the Folkestone & Hythe district.
  • The business must have been actively trading*** on and before 4 November 2020, are not in administration, insolvent or be subject to a striking-off notice.
  • Grants will be paid subject to state aid regulations. If state aid rules are breached the responsibility lies with the applicant and, in line with the legislations, the council can take action to recover the funding.
  • Any grant income received by a business is taxable, but only businesses that make an overall profit once grant income is included will be subject to tax.

*Significantly impacted - a statement and figures will be required from the company to demonstrate that the impact of the national lockdown will have at least a 25% impact.

** Fixed  business costs - these are any costs relating to the operation of the business that cannot be cancelled during this period. These could include property costs such as rent for non-rateable commercial premises, utilities, etc. Fixed costs do not include employee costs. Fixed business costs need to account for at least 30% of the appropriate grant award for the business to be eligible for a grant.

***Trading - a business that is clearly operating from an address within the district.

Exclusions

The following businesses will not be eligible for a Folkestone & Hythe Additional Restrictions Grant:

  • Businesses that are able to continue to trade and can operate their services effectively remotely.
  • Businesses that have chosen to close but not been legally required to do so will not be eligible for this grant unless they can demonstrate that they have been significantly impacted* and have incurred fixed costs** to the required levels.
  • Businesses which have already received grant payments that equal the maximum levels of state aid permitted under the de minimis and the COVID-19 Temporary State Aid Framework.
  • Businesses that are in administration, insolvent or subject to a striking-off notice and/or were not actively trading on and before 4 November 2020.
  • Businesses that have received a Local Restrictions Support Grant will not normally also qualify for a Folkestone & Hythe Additional Restrictions Grant (FHARG). However, this will be at the council's discretion and will take into account the impact of national lockdown on the business and the significance of the business to the local economy.

Grant levels

An eligible business will normally receive a single grant award under this scheme.  However, this will be at the council's discretion with any decision taking into account the impact of national lockdown on the business and the significance of the business to the local economy, in terms of the number of jobs and the level of business turnover.

The Additional Restriction Grants levels for Folkestone and Hythe district will be similar to the Local Restrictions Support Grant Scheme:

  • For properties with a rateable value of £15k or under, grants are £1,334
  • For properties with a rateable value of between £15k-£51k, grants are £2,000
  • For properties with a rateable value of £51k or over, grants are £3,000

Where a business is not located in business rated property, occupies shared business premises or is residence based, reference will be made to the size of the business (number of employees and annual turnover in 2019/20 financial year) and the financial impact on turnover during national lockdown in determining the level of grant awarded. 

In exceptional circumstances a higher level of grant and/or more than one grant may be awarded at the discretion of the council which, in making its decision, will take into account the size of the business, the importance of the business to the local economy and the severity of the impact of the national COVID lockdown period on the business.

The funding provided by government for the Additional Restrictions Grant is one off funding so no further funding will be available for the Folkestone & Hythe ARG scheme once this funding is allocated.

Appeals

Where a business disputes the decision made by the council, the appellant should send an email to economy@folkestone-hythe.gov.uk requesting an appeal within one week of receiving a decision notification. Appeals should include a statement and supporting evidence.

The application and appeal documents will be considered by the council's Director of Place, who will make a final decision in consultation with the leader of the council. The appellant will subsequently be notified of the outcome of their appeal.

Application Process

The closing date for applications is Friday 8 January 2021.

Businesses applying for ARG (Discretionary) funding will be required to provide the following supporting evidence that should be emailed separately to economy@folkestone-hythe.gov.uk following completion of the application form:

  • A copy of a bank statement that shows the business/applicant's name, registered address with transactions from within the last three months.
  • Invoices for business costs incurred over the national lockdown period
  • Summary financial accounts for the latest available financial year

Please note that the following details will be required for the application form.  It is suggested that this information is prepared ahead of starting to complete the application form:

  • Company or Charity Commission registration number
  • Total business income in the 2019/20 financial year (£)
  • Total business costs in the 2019/20 financial year (£)
  • Total business income that had been expected for the 5 November to 2 December 2020 period prior to lockdown (£)
  • Total business income now expected for the 5 November to 2 December 2020 period due to lockdown (£)
  • Total business costs and individual cost items incurred for the 5 November to 2 December 2020 period (£)

All enquiries about this grant funding and this policy should contact the Economic Development Team using the email address economy@folkestone-hythe.gov.uk

How to apply for Folkestone & Hythe Additional Restrictions Grant

The online application form for Local Restrictions Support Grants (closed) can be accessed by clicking here.

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