The Government has introduced additional grant funding aimed at small businesses with ongoing, fixed property-related costs who didn’t qualify for the Small Business Grant or the Retail, Hospitality and Leisure Grant due to either not having a rates liability or not meeting the Government-set criteria.
The Government guidance of 13 May 2020 gives Manchester City Council some discretion over allocating grants so that they can issue them based on local insight and economic need.
Manchester City Council’s approach to allocation of the discretionary grants
The Council recognises that Manchester is home to a large number of independent, start-up and micro businesses that occupy rented business accommodation where rates are inclusive.
These businesses are vital to the economic growth and development of our city and to ensure that they can support as many businesses as possible, grant payments will normally be limited to a maximum of £5,000 per applicant.
To prioritise grant awards, the City Council have grouped businesses based on their impact on the local economy and the following rationale, and will award them in this order:
Start-up and micro businesses
This type of business has the least financial resilience and is more adversely affected by cash-flow issues than larger and more established businesses.
Small business in the digital, life sciences and creative sector
Digital and creative sectors are key growth sectors in the City and will play a key part in the city’s recovery.
Businesses within Enterprise Zones
There are two Enterprise Zones (EZ) in Manchester, located in the city's growth areas — Manchester Oxford Road Corridor EZ and Manchester Airport City Extension EZ. The Oxford Rd Corridor EZ has a concentration of health and bio-science businesses with a high degree of innovation. The Airport EZ is another key growth location and has been significantly affected by the COVID-19.
Charities and Co-operatives
Charities and co-operatives will be needed to provide services to the most vulnerable residents in the city post-crisis.
Independent permanent food halls and market halls
Businesses in independent permanent food halls and market halls are likely to be small or micro, and not have the reserves needed to support them through this crisis.
Independent retail businesses
Independent retailers are likely to be small or micro, and not have the reserves needed to support them through this crisis.
Other businesses with fixed, property-related costs of more than £1,500
In line with the Government-set threshold, businesses must have relatively high fixed-property costs of more than £1,500 a year to qualify for the scheme.
As there is limited Government funding for this scheme, Manchester City Council will consider applications from eligible businesses in a phased way, starting with start-up and micro businesses, and then moving to the remaining businesses in the order listed below:
- Start-up and micro businesses with fixed property-related costs of more than £1,500 a year
- Digital, life sciences and creative sectors with fixed property-related costs of more than £1,500 a year
- Business within the Enterprise Zones* with fixed property-related costs of more than £1,500 a year
- Manchester-based charities and co-operatives with fixed property-related costs of more than £1,500 a year
The City Council will then consider the remainder of the applications from eligible businesses in this order:
- Independent permanent food and market halls that are known to make a positive contribution to employment and the economy of the city with fixed property-related costs of more than £1,500 a year
- Independent retailers
- Other businesses
Online applications are open for two weeks only from 26 May 2020 until 9 June 2020.
For more information and to apply click here