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Additional Restrictions Grants: discretionary grants for businesses

If your small, micro or home-based business has experienced a loss of income, it may be eligible for an Additional Restrictions Grant from Merton Council. A points-based system will be used to share a grant fund of at least £3.5 million between eligible businesses.

The closing date for applications is 27 April 2021

Eligibility

To be eligible, your business must meet all of the following criteria. The business must:

  • be home-based, or a small or micro business, as defined below
  • have been trading prior to 1 January 2020 in Merton
  • have had a loss of income of 40% or greater, for the period April 2020 to March 2021 compared to the previous year, as detailed below
  • not be a nationally run company operating a number of stores or chains locally or across the UK
  • not be in administration, insolvent, struck off or subject to a striking-off notice
  • not have received funding through Merton Giving
  • not have received an SEISS grant (Self-Employment Income Support Scheme grant) from the Government

When calculating loss of income:

  • loss of profit will not be considered
  • if your business does not have a full year's trading records for 2019/20 we will extrapolate income for the part of year over the whole 12 months.
  • Furlough payments will not be included
  • Any business grants received from the council, any other council or the Government will be treated as income and must be declared along with your income

To be eligible for this scheme as a home-based business, it must:

  • be run from a Merton residential address
  • have a turnover of at least £15,000 a year
  • not have received a government Self-Employment Income Support Scheme grant.

To be eligible for this scheme as a small or micro business, it must:

  • satisfy two or more of the following requirements in a year:
    • turnover of £10.2 million or less,
    • balance sheet total of £5.1 million or less
    • employ fewer than 50 staff
  • have accommodation costs – either Business Rates, rent, mortgage or licence fees (businesses in shared spaces are included)

Small or micro businesses can apply for this grant even if they have received previous grants or Business Rates Relief.

How to apply

Apply by 27 April 2021 using our data capture form:

Apply for an Additional Restrictions Grant

When applying, you will need to provide evidence of:

  • property costs
  • bank details for the business
  • income for the period April 2020 to March 2021*
  • income for the period April 2019 to March 2020*
  • number of employees of the business as at 1 March 2021
  • number of Merton residents employed by the business as at 1 March 2021
  • type of business
  • proof of trading since 1 January 2020 in Merton.

* We will not accept bank statements as evidence of income, but can accept a profit and loss statement.

You will also need to confirm that the amount of relief is not in excess of State Aid limits (see the De Minimis Regulations 1407/2013).

Funding available

Merton Council has approximately £4,870,737 available for this phase of the Additional Restrictions Grants scheme. Up to £1 million of funding will be allocated to wider business support initiatives that will help ensure sustainability, development and enhance the high streets and our business premises offer. The focus will be on developing infrastructure rather than activities aimed at individual businesses. All remaining funding (not less than £3.5 million) will be allocated for direct business grants reflecting the criteria set out on this page.

Grant allocation

The grant fund will be shared between all successful applicants using a points-based system.

Points will be awarded to each business based on accommodation costs and employees as follows.

Accommodation costs

Monthly accommodation costs Points
£500 or less1
£501 to £1,0002
£1,001 or over3
  • Accommodation costs are calculated as rent and businesses rates combined.
  • If the business has more than one property in Merton then accumulated costs will be taken.
  • Accommodation costs for properties outside of Merton will not be included.
  • If in 2020/21 the business has received Business Rates Relief then the rates charge per month will be zero.

Employees

Type of employee Points
Non-Merton residents1 per employee
Merton residents3 per employee
  • Employees need to be salaried and not contractors or self-employed staff.
  • A business run from home would be awarded three points as the application must be a Merton resident. Additional points would be for any staff employed. Property costs for the home will not be taken into account.

How grants are calculated

After all applications have been reviewed and scored, the total number of points for all applications will be calculated and based on the exact level of funding available each point will be awarded a monetary value. Successful applications will then receive a grant to the value of their points score multiplied by the value per point.

Grants will be capped at 100% of the total loss of income.

For example, if after all applications have been reviewed the total points calculated for all was 3,500, and the total funding was £3,500,000 then each point would be worth £1,000 grant (£3,500,000 fund divided by total points 3,500). If a business scored 20 points from their application they will be awarded £20,000 in grant, subject to the cap.

This approach will ensure that all the funding will be spent in phase two of the scheme.

Only one grant per business can be awarded.

Paying grants

All applications will need to have been received and assessed before any grants are paid.

Pre- and post-payment checks will be undertaken.

Decision making

If the information requested is not provided, after working with the applicants, the application will be refused.

Decisions on applications and awards will be made at a panel consisting of:

  • Director of Corporate Services
  • Chief Executive of Merton Chamber of Commerce
  • Chief Executive of Merton Connected 
  • Head of Revenues and Benefits
  • Economy Manager

Final decision will be made by the Director of Corporate Services.

The applicant will be notified of the decision by email.

The progress and results from the scheme will be reported to Cabinet and BEIS and successful applicants published on our website.

Appeals

We are not required to provide a right of appeal against any decision, as grants awarded under the Additional Restrictions Grant scheme are discretionary. However, we will work with applicants to make sure they provide the necessary evidence to support a successful application.

The Council operates a complaints process for dissatisfied service.

Policy

Additional Restrictions Grant Policy Phase 2