Additional fund for small businesses

First posted: 27 May
This additional fund isaa 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.
12 August 2020

DEADLINE: 16th August 2020.

London Borough of Newham has now set a deadline for the Local Authority Discretionary Grants Fund. Learn more here. 


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. The application is now open!! Applications can be made from 22 June 2020 to 3 July 2020. Applications will be considered on a first-come, first-served basis and incomplete or inadequately evidenced applications will be rejected. 

However, due to the limited resources that have been allocated to Newham by the government, regrettably the application period may close earlier and not all eligible businesses which apply are likely to be successful. We have endeavoured to maximise the relatively small allocation (£2.88m) to meet local economic challenges, whilst remaining within government guidelines. 


Applicants are asked to read the criteria before submitting an application and will be required to submit documentary evidence to show that all criteria are met.

Check the links below for more detailed eligibility criteria and the application form. 



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