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Additional Restrictions Grant

A one-off funding has been allocated to councils to use their discretion to support businesses that have been forced to close or are severely impacted by national restrictions due to the COVID-19 pandemic.

The Additional Restrictions Grant (ARG) supports businesses that are not covered by other grant schemes or where additional funding is needed.

We are administering the ARG in three phases:

  • Phase One - grants to businesses to cover the period from 2 December (when London returned to Tier 2 restrictions) and up to 26 February 2021.
  • Phase Two - grants to businesses during the period January 2021 to May 2021.
  • Phase Three - we will review the grants administered during phase one and two, after which we may offer wider business support up to March 2022 to assist businesses to recover and adapt to the impact of COVID-19.

Phase one is now closed. Phase two closes on 28 May 2021.

Information on the criteria, priorities and application processes for phase two is detailed below.

We have not determined our criteria for phase three yet. We will communicate the latest news and ARG information in our business enewsletter and on this page of the website. Sign up for our business enewsletter.

Additional Restrictions Grant: Phase One

Phase one closed on 26 February 2021.

Additional Restrictions Grant: Phase Two

In Phase Two we are administering grants of up to £9000 to support small businesses based in Lewisham. Applications close 28 May 2021.

Grants are available to business in all sectors but are focussed on the following priority sectors:

  • Shared workspaces - Small businesses and social enterprises in shared offices or other flexible workspaces which do not have their own business rates assessment with a rateable value of less than £51,000
  • Cultural, Creative, Evening and Night Time Economy - Small businesses and social enterprises in the Cultural, Creative, Evening and Night Time Economy sectors with a rateable value of less than £51,000
  • Childcare providers - Lewisham Registered Childcare settings which have been severely impacted due to COVID 19 Restrictions.
  • Home-based businesses - Established businesses operating from the homes of their owners. You will need to provide proof that:
    • the business is your main source of income through Companies House or HMRC
    • pre-COVID revenue of £10k or more
    • the last 12 months trading records
  • Affordable workspace providers - These are independent workspace providers who cater predominantly to the creative and digital sectors, providing affordable workspace.
How much you will receive

Grant rates depend on the rateable value of the business premises concerned:

Number of employees

 Grant value

1–4  £4,000

To be eligible for Phase 2 of the ARG your business must:

  • be based in the London Borough of Lewisham
  • not have received a grant from another local authority for the trading/operating address given
  • have been actively trading (buying/selling goods or services) on 4 November 2020
  • have a turnover of at least £10,000 per annum during 2019/20 tax year (pro-rata if a newly established business).

You are not eligible if your business:

  • is eligible for the coronavirus Closed Businesses Lockdown Payment. Find out more about the Closed Business Lockdown Payment.
  • is in administration, insolvent or where a striking-off notice has been made.
  • has already reached the State Aid limit.
  • can continue to operate during the period of restrictions because it does not depend on providing direct in-person services from its premises (e.g. accountants, solicitors)

We will reject applications that do not meet all of the above criteria.

How to apply for Phase 2 of the ARG

Fill out the online application form below. Applications close 28 May 2021.

You must include the following evidence to support your claim (maximum file size 10mb):

  • bank statements for the last three months for the account into which you would like the grant to be paid – statements must evidence trading activities from 2019.
  • evidence of the number of PAYE employees – payroll evidence including proof that they are currently employed and/or confirmation of self-employed status from HMRC
  • evidence that business is based in Lewisham (e.g. tenancy or mortgage agreement)
  • profit and loss summary from April 2019 to November 2020
  • evidence of the fixed ongoing business-related costs (for example, copy of signed lease, contract, licence, membership of co-working or mortgage agreement).

We will reject your application if you do not supply this evidence.

We have received a limited amount of funding and if there is significant demand, it may not be possible to pay all eligible businesses who apply. We aim to administer the grant on a first come first serve basis.

All grant awards will be made at the discretion of the council and we reserve the right to vary the terms of the scheme.

Apply for Phase 2 of the ARG using our online form.

Next steps

We will email you to acknowledge receipt of your application.

We aim to process applications within ten working days. We will email you to tell you if your application has been accepted or rejected.

We began processing payments for phase two on 19 February 2021. We will continue receiving applications until 31 March 2021 or until the funding for this phase has been fully administered.

If you have any questions please email economyandpartnerships@lewisham.gov.uk

Subsidy allowance

The EU State aid rules no longer apply to subsidies granted in the UK following the end of the Brexit transition period, on 31 December 2020.

This does not impact the limited circumstances in which State aid rules still apply under the Withdrawal Agreement, specifically Article 10 of the Northern Ireland Protocol.

The UK remains bound by its international commitments, including Subsidy obligations set out in the Trade and Cooperation Agreement (TCA) with the EU.

You can find guidance for public authorities on complying with the UK’s international obligations on subsidy control on the Government’s website.


Grant income is taxable.

The ARG needs to be included as income in the tax return of the business.