Additional fund for small businesses

This additional fund was aimed at small businesses with ongoing fixed property-related costs and who were not eligible for the Small Business Grant Fund or the Retail, Leisure and Hospitality Fund.
27 May 2020

On May the 1st additional 5% uplift to the £12.33 billion funding was announced for small businesses.

The Central government asked local authorities to prioritise the following businesses:

  • in shared spaces
  • regular market traders
  • small charity properties that would meet the criteria for Small Business Rates Relief
  • bed and breakfasts that pay council tax rather than business rates.

However, the local authorities may choose to make payments to other businesses based on local economic need, so the allocation of funding will be at the discretion of Newham Council. 


Businesses must be small, under 50 employees, and they must also be able to demonstrate that they have seen a significant drop of income due to Coronavirus restriction measures.

How much funding? 

  • There will be three levels of grant payments.
  • Local authorities may disburse grants to the value of £25,000, £10,000 or any amount under £10,000. The value of the payment to be made to a business is at the discretion of the local authority. 
  • Grants are capped at £25,000.
  • The next level payment under the Local Authority Discretionary Grants Fund is £10,000.
  • Local authorities have discretion to make payments of any amount under £10,000. It will be for local authorities to adapt this approach to local circumstances, such as providing support for micro-businesses with fixed costs or support for businesses that are crucial for their local economies. We expect that payments of under £10,000 may be appropriate in many cases.

When will the Discretionary Grant be paid out?

It is anticipated that the first payments made under the scheme will be received by businesses by early June 2020.

If you have employees on furlough – can you still apply?

Businesses who have applied for the Coronavirus Job Retention Scheme are eligible to apply for this scheme.

How to apply for the Local Authority Discretionary Grant?

Newham Council should run an application process. On their website, they commented: "When the grant scheme has been approved in June, our website will have information on the scheme and the application form".  We will update you once we have more details. 


This guidance is intended to support local authorities in administering the Local Authority Discretionary Grants Fund announced on 1 May 2020. It applies to England only. Read the guidance for more details and information. 

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