Visitor Accommodation Support

The following fixed monthly grants to eligible businesses were announced on 26th June, but will be subject to review, in light of the decision to extend payroll support. Any revisions will be announced in advance of the October 1st start date. The grants for hotels or guest accommodation are paid per bedroom, whilst the rate for self-catering businesses applies to each unit:

The following eligibility criteria were announced on 26th June. It may be necessary to make small adjustments to these following the decision to extend payroll support.

Eligible businesses

Businesses will be considered eligible if all three of these conditions apply:

1. They are expecting to incur a loss in the 12 months ending 31st March 2021. For this purpose, the forecast profit or loss should include any mitigating actions they plan to take, such as reducing discretionary spend and managing staff numbers.

2. They have insufficient available funds to meet all expenses as they fall due during this loss making period whilst also maintaining the business in the same condition and retaining similar levels of core staff, as at the start to the 2020 season and retaining adequate reserves to resume trading.

For this purpose available funds will normally mean the net current assets held within the business, as well as any available funds held by companies under common control or by the business owner.

3. The business can demonstrate being commercially viable prior to the Covid-19 pandemic. Businesses that did not show profits in their last two annual financial statements prior to 31st March 2020 will need to prove a realistic expectation of returning to profitability.

Standard support

Eligible businesses will qualify for standard support where they are expecting to make a loss in the 12 months ending 31st March 2021, and where this level of payment will be sufficient for the business to be able to resume normal operations at the start of 2021 season.  Please note the grant payment is not expected to cover all losses. Businesses may need to rely on reserves and previous profits as appropriate.

Enhanced support

Eligible businesses will qualify for enhanced support where they are expecting to make a loss in the 12 months ending 31st March 2021, and when the standard grant is insufficient for the business to be able to resume normal operations at the start of the 2021 season. This will normally mean that they are unable to meet all expenses as they fall due after taking mitigating actions such as minimising spend on non-critical staff. Businesses may need to demonstrate this with a cash flow forecast. Relatively few businesses are expected to qualify for enhanced support and those that claim will undergo additional scrutiny to ensure that this increased level of support is justified.

Other considerations

Room numbers and categorisation

Businesses may claim a grant in respect of those bedrooms or units that are available for use in the grant period, subject to this being no more than the number of rooms already registered in each category as visitor accommodation with the States of Guernsey. For this purpose, bedrooms or self-catering units that are closed for reasons solely related to Covid-19 restrictions, will be treated as available for use, and a claim may be made.

Period

Grants are available in respect of the period starting October 2020. The States of Guernsey expects this grant scheme to remain in place until the end of March 2021, however this will be subject to review in the light of ongoing trading results and any relaxation of travel restrictions.

Use of Grant

Although claimants are free to use the grant scheme to fund their businesses operations in the way they see fit, it is expected that the scheme will enable the retention of critical employees throughout the period. Claimants with significant rent costs may still need to negotiate terms with their landlord for a deferral or waiver of costs. Those with significant mortgage interest costs may also need to discuss options with their bank.

Capping of grant

The total grant that a business can claim will be capped at the actual loss incurred in the 12 months to 31st March 2021. Businesses are expected to pursue insurance claims, provide relevant information and include the expected proceeds of these in their forecast. Businesses may include within their profit forecast a reasonable salary cost for any operational role performed by the business owner. In these cases the salary cost should be clearly noted in the claim form.

Businesses will be asked to self-assess against the latest eligibility criteria on their initial claim form. To support this self-assessment, business will also be asked to complete a forecast template which will demonstrate the profit or loss forecast for the 12 months ending 31st March 2021 and signed Annual Financial Statements for the last two available years. In the development of the grant scheme, many businesses kindly provided a financial forecast and previous Annual Accounts. In these cases businesses will not need to resend their Annual Accounts.

It is acknowledged that this information will be commercially sensitive. Access to documents will be limited to those people responsible for administering the accommodation grant claims process.

The States of Guernsey will review these self-assessments, and will in particular compare the forecasts to the previous trading record. Those business claiming the enhanced grant will be reviewed for compliance with the additional eligibility requirements of this rate.

To ensure transparency of this grant scheme, the States of Guernsey reserves the right to publish details of support provided to those businesses claiming. This may include details of the name of the business, the level of grant paid (standard or enhanced), as well as the amount paid.

Exceptions

There may be cases where the grant entitlement set out in this scheme does not adequately reflect the needs of a business. In these cases claimants should contact the States of Guernsey using the details provided below to discuss their concerns.

Businesses operating campsites have not been included in this scheme because their costs are likely to differ so significantly from other visitor accommodation. These businesses should consider making a claim as an exceptional case under the payroll co-funding scheme effective from 1st July 2020.

To submit a claim you will be asked to complete an on-line form. The States expects this form to be available prior to the end of July. This guidance will be updated with a link to the form at that time.  To enable further work on the value of the grants and be in a position to confirm to business owners their eligibility and the value of the grant payable prior to the start date of 1st October, prompt submission of claims will be requested with an indicative timescale of mid-August.

The first payments will be due in respect of October and will be paid during that month to help with cashflow pressures. Subsequent grant payments will be payable monthly thereafter subject to ongoing eligibility and provision of required financial updates. .

Claimants will be required to provide quarterly trading results throughout the 12 months to 31st March 2021 within 21 days of the quarter end. Trading results for the quarter ended 30th June will be required with the initial claim submission. These results should also be reflected in the 12 month forecast provided with the initial claim. Where subsequent quarterly trading results are materially different to forecast, a revised forecast may be required.  This will enable ongoing monitoring of the trading across the sector as well as establish continued eligibility.  The States reserves the right to request additional information where necessary to validate claims and to suspend grant payments or request their return if the validity of the claim cannot be confirmed.

If you have any questions please email business.support@gov.gg and include “accommodation grant” in the subject line.  Please do not email any documents to this address unless asked to do so. Alternately please call 743803. Lines are open Monday to Friday 9.00 to 5.00pm.