Additional Restrictions Grant (ARG) for small businesses additional information

Phase 1 Additional Restrictions Grant

*Application deadline 30 September 2021

Phase 1 has reopened for businesses which missed the deadline of 28 February. It now supports any non-essential business which was trading before 1 April 2021, which does not directly pay business rates and was affected by the early closing restrictions of 17 October-4 November, the national lockdown 5 November-2 December 2020, Tier 4 restrictions 20 December 2020-4 January 2021 and the national lockdown 5 January-12 April 2021.

Phase 1 will be used to support to businesses which are unable to access the mandatory Local Restrictions Support Grant for Open and Closed businesses.

Businesses which do not occupy a commercial property on which they pay business rates (e.g. if you are leasing a retail unit where you pay rent and business rates together to your landlord) and which were effectively forced to close 5 November 2020-2 December 2020); 20 December 2020-4 January 2021 and 5 January 2021-12 April 2021, and/or which were affected by the 10pm early closing Tier 2 restrictions of 17 October-4 November aimed at restaurants, cafés and pubs. In order to apply, businesses must be able to demonstrate a financial loss or reduction.

Below are the range of businesses Phase 1 aims to support:

  • all non-essential retail including, but not limited to, clothing and electronics stores, vehicle showrooms, travel agents, betting shops, auction houses, tailors, manual car washes, tobacco and vape shops
  • indoor and outdoor leisure facilities such as bowling alleys, leisure centres and gyms, sports facilities including swimming pools, golf courses and driving ranges, dance studios, stables and riding centres, soft play facilities, climbing walls and climbing centres, archery and shooting ranges, water and theme parks
  • entertainment venues such as theatres, concert halls, cinemas, museums and galleries, casinos, adult gaming centres and arcades, bingo halls, bowling alleys, concert halls, zoos and other animal attractions, and botanical gardens
  • personal care facilities such as hair, beauty and nail salons, tattoo parlours, spas, massage parlours, body and skin piercing services, non-medical acupuncture, and tanning salons.
  • businesses providing in-person services and are unable to trade due to government restrictions.

Phase 1 will be extended to support domestic/residential-based businesses which are registered with Companies House or registered with HMRC. In particular, we are targeting businesses severely impacted by government-imposed restrictions during the following periods: 5 November 2020-2 December 2020; 20 December 2020-4 January 2021 and 5 January 2021-12 April 2021. This phase will be launching soon.

Do you qualify?

If your business does not fall within the above categories, unfortunately you will not be eligible for Phase 1 funding.

We reserve the right to change our eligibility criteria and, if you are not already registered, please email [email protected] to sign up to our updates on any new and additional measures of support and to check your eligibility. 

Exclusions

The following businesses are NOT eligible to apply.

  • You have received a Local Restrictions Support Grant
  • Businesses that pay business rates directly to Newham Council  
  • Businesses subject to local restrictions that are implemented for less than 14 days and businesses that are closed for less than 14 days
  • Businesses that have chosen to close but not been required by law or a direction from Newham Council
  • Businesses which have already received grant payments that equal the maximum levels of state aid permitted under the de minimis and the Temporary Framework for COVID-19 State Aid responses 
  • For the avoidance of doubt, businesses that were in administration, are insolvent or where a striking-off notice has been made are not eligible for funding under this scheme
  • For the avoidance of doubt the premises you are applying for must be the operational address of the business. Only market traders with a valid street trading licence may apply relating to storage costs which must be evidenced by way of recent appropriate invoices. Other businesses may not apply for premises costs which are purely for storage. 
  • For the avoidance of doubt, the following essential businesses were not required by the government to close during the national lockdown, from 5 November-2 December 2020. Therefore, you are not eligible for a grant payment:
  • food shops, supermarkets, garden centres, hardware stores, building merchants and off-licences
  • petrol Stations, car repair/garage, tyre repair and MOT services, bicycle shops, taxi and vehicle hire businesses, car parks and motorway service stations
  • banks, building societies, post offices, loan providers and money transfer businesses
  • medical services such as dentists, opticians and pharmacies
  • vets, pet shops and agricultural supplies shops
  • storage facilities, funeral directors, launderettes and dry cleaners  
  • public toilets  
  • outdoor playgrounds
  • businesses that were/are able to continue to trade because they do not depend on providing direct in-person services from premises and can operate their services effectively remotely (e.g. accountants, solicitors)

If you’re not eligible, please visit gov.uk to find out what other financial support you can get for your business.

Tax

Grant income is taxable.

Evidence required

Before you start the form, the following documents will be required as proof of your eligibility:

1. ID (one of the following):

  • Valid EU/UK passport
  • Valid overseas passport showing visa with right to work
  • Valid EU ID Card
  • Full UK driver’s licence
  • UK birth certificate and National Insurance card (you must upload both documents).

2. Proof of your business registration (one of the following): 

  • Business Certificate of Incorporation (Company Registration)
  • Self-employed HMRC letter showing your Unique Tax Reference (UTR) number.

3. Fixed commercial property-related documents in full (one of the following): 

  • tenancy
  • lease
  • licence
  • rental documents
  • market trader’s licence and invoice (both documents must be uploaded).

4. Bank statements: 

  • need to cover period up to 2 December 2020 for a minimum three month period including October and November 2020 and must show fixed property-related costs; one statement must show the most recent property-related cost.
  • Blank/sample invoice on company headed paper that shows (where applicable): 
  • Bank details account name
  • Number and sort code

5. Company registration number and VAT number (where applicable).

6. Recent utility bill (where applicable).

Every application and its supporting evidence will be thoroughly checked for eligibility. Applications suspected to be fraudulent will be investigated and any business caught falsifying their records to gain grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error.

Award guidance notes: 

Phase 1 will aim to distribute up to £1m of the Additional Restrictions Grant (ARG). Businesses in the below categories which are able to demonstrate a financial loss or reduction: Details of actual amounts to be awarded are outlined below. 

Category

Amount

Target business (including sole traders)

A)    Businesses which do not occupy a commercial property on which they pay business rates directly and which were effectively forced to close during the national lockdown 5 November-2 December 2020, Tier 4 restrictions 20 December 2020-4 January 2021 and the national lockdown 5 January-12 April 2021.

Eligible businesses will be able to apply for fixed property costs (rent or licencing agreements) for the four week lockdown period plus 25% (to cover overheads) up to a maximum of £3,000.

  • All non-essential retail, including, but not limited to clothing and electronics stores, vehicle showrooms, travel agents, betting shops, auction houses, tailors, car washes, tobacco and vape shops.
  • Indoor and outdoor leisure facilities such as bowling alleys, leisure centres and gyms, sports facilities including swimming pools, golf courses and driving ranges, dance studios, stables and riding centres, soft play facilities, climbing walls and climbing centres, archery and shooting ranges, water and theme parks.
  • Entertainment venues such as theatres, concert halls, cinemas, museums and galleries, casinos, adult gaming centres and arcades, bingo halls, bowling alleys, concert halls, zoos and other animal attractions, botanical gardens.
  • Personal care facilities such as hair, beauty and nail salons, tattoo parlours, spas, massage parlours, body and skin piercing services, non-medical acupuncture, and tanning salons.

Note: businesses need to have been trading from 4 Nov 2020

B)    Businesses in the leisure and hospitality which do not occupy a commercial property on which they pay business rates directly but which were affected by Tier 2 lockdown 17 October – 4 November).

Eligible businesses will be able to apply for payments for the 19 days in which businesses were affected.  The payments will be set according to the business’ rent/licencing values (figures in line with allocation of LRSG (Open). Payments are set for 28 day period   on pro rata basis. Relevant payment for 19 days is in brackets.

Rent/ licencing value: Rolling 28 day allocation (19 days) 
>£15,000: £640 (£434)
£15,001- £50,999: £1025 (£696)
£51,000+: £1420 (£964)

Approximate total  estimated amount to be allocated in this category is less than £5000

Target businesses 
(including sole traders):

  • Pubs 
  • Restaurants
  • Cafes
  • Hotel accommodation
  • Bed & Breakfast
  • Leisure

Note: businesses need to have been trading from 16 October 2020 
 

How to apply: 

An online application will need to be completed. Please ensure you understand and meet the eligibility criteria before submitting your application.

Apply

Please ensure your application is complete with all relevant documents and correct bank details as assessing officers will not be able to seek clarifications or additional information from you. Forms which are incomplete or poorly evidenced will be declined.

Additional notes:

  1. Grants will be allocated on a first come, first served basis in line with the applicant’s eligibility and their meeting the necessary due diligence threshold.
  2. One grant per premises can be paid but an additional application will be required for each business in separate premises. You will need to provide previous application reference number/s for any additional application/s you make.
  3. Submitting an application and meeting the eligibility criteria does not guarantee approval of a grant.
  4. There will be no appeals process.

What happens after your application is submitted

After your application has been completed you will receive an email confirmation with a reference number starting with ‘ARG’. Please keep a note of this reference number and use it in any communication with us in relation to your application.

We will allocate your application for assessment on a first come, first served basis; an assessor will check your application is eligible and the supporting documents meets the criteria of this grant scheme.

Timescale for payments

It is not possible to provide a precise turnaround time for payment, as this is dependent on factors such as the number of submissions, number applications approved, final payments checks and the complexities of some businesses in relation to the eligibility criteria. However, we hope to notify you of a decision within 28 working days of you submitting the application. 

Businesses which qualify for payments will receive payment by BACS. Please allow an additional seven working days from the date of when you receive our award confirmation email to receive funds.

When to contact us

If your business does not qualify we will write to you by email, stating the reasons. However, if you feel we have incorrectly assessed your application please contact Our Newham Business and Enterprise team in the first instance to discuss. On some occasions, where necessary, you may be asked to submit a new application because your original application did not contain all evidence required. Submitting an application and meeting the eligibility criteria does not guarantee approval of a grant.

Please note each application will be assessed based on the date and time it is submitted.