A NEW discretionary grant support scheme has opened to South Lakeland businesses.

Central government has made additional funding available to councils to provide further grants to businesses which have been affected by Covid-19.

Councils in Cumbria, including SLDC, say they have worked to develop a 'shared approach' to the Local Authority Discretionary Grants Fund (LADG), ensuring that schemes offered are coherent throughout the county.

The initial government guidance excluded businesses that were eligible for the Self-Employment Income Support Scheme. But the criteria for the LADG was amended on May 23 to include these businesses.

Although each of the councils in Cumbria have been provided with differing sums of finance, the intention has been clear from each council and their elected members that the aim must be to support the largest number of businesses possible, whilst still following the government’s guidelines.

The criteria for businesses to access the grant are: having been trading on March 11; not having been eligible or received a grant from the existing Covid grant schemes or other support schemes (excluding the Self-Employed Income Support Scheme).

The aim of the grant money is to support, in particular: small or micro businesses; businesses with relatively high ongoing fixed property-related costs; businesses which can demonstrate that they have suffered a significant fall in income due to the Covid-19 crisis; businesses which occupy property, or part of a property, with a rateable value or annual rent or annual mortgage payments below £51,000 (where a rateable value exists this will be the figure used).

The guidance on the fund has set down that the grants can be allocated in amounts of £25,000, £10,000, or the local authority has discretion on any amounts they wish to provide under £10,000.

Given the limited funding being made available, it is unlikely that SLDC or any of the other councils will award many, if any, grants of £25,000 as this would quickly deplete the available fund and may mean a larger number of businesses going without much-needed funds.

A spokesperson on behalf of Cumbrian councils said: “We are genuinely grateful that central government has enabled local councils to support their areas with further business grants.

"In Cumbria alone, we have provided grants totalling more than £160 million since the pandemic struck.

“It’s also reassuring to know that government has listened and acted upon our and our partners’ calls to include those businesses who may have not met the criteria for the scheme.

"Initially ruling out those who were eligible for the Self-employed Income Support Scheme could have led to many of our most affected businesses missing out through no fault of their own.

“Unfortunately, we realise that a number of businesses may still not be eligible and the money provided won’t support all those in need.

"We will continue talking to government to ensure Cumbrian businesses get the vital help they need.”

In South Lakeland online applications for the Local Authority Discretionary Grants Fund opened at midday on Monday.

Applications will be open for a full two weeks and applicants will need to submit their application before midday on Monday, 15 June. Applications will close at this point.

Once the two-week window has closed, applications will be assessed with funding prioritised and paid out to businesses as soon as possible.