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Flood Recovery Grant Scheme

Support for businesses severely affected (either directly or indirectly) by the December 2015 flooding in Lancaster, Wyre and the Ribble Valley.

Support for businesses severely affected (either directly or indirectly) by the December 2015 flooding in Lancaster, Wyre and the Ribble Valley.

UPDATE! DEFRA Farming Recovery Fund also extended to all parts of Lancashire and Yorkshire (see bottom of page)

This grant scheme is to support small and medium sized businesses severely affected (either directly or indirectly) by the flooding of December 2015, to help you recover quickly and get you trading successfully and sustainable. The support has been put together based on experience of supporting businesses during the previous flooding crisis in the country, and drawing on best practice identified elsewhere. Grants are not available for costs that should have been covered by insurance.

This funding is provided by the Department for Business Innovation & Skills.

You can apply for up to £10,000, depending on the size of your business, and subject to a thorough approvals process to ensure you meet the criteria, as follows:

Annual turnover                      FTE jobs          Maximum grant

Up to £82,000                         1                      £3,000

£82,001 - £300,000                 2-5                   £5,000

£300001 - £500,000                6-10                 £7,000

£500,001 plus                        11 plus             £10,000

Either annual turnover or full time equivalent (FTE) employee numbers will be used to calculate the maximum grant – using whichever puts you in the highest grant category.

Any offer will be capped if necessary to ensure that state aid limits will not be exceeded. This is unlikely to affect you unless you have already received significant public funding.

Dates for applications and claims

Applications will be dealt with on a first come first served basis and you should apply as soon as possible. You should have spoken to your insurers before you apply. The final date for applications is 28th February 2016.

Final claims must be submitted by 31st December 2016.

What's Involved

What can you apply for?

Specialist expertise:

Expertise to help plan the clean up and recovery – for example accountant, architects, designers, IT specialists, HR, etc.


Expertise to help the business trade again and implement a marketing plan – for example to produce a marketing plan, recreate customer records, reinstate or introduce electronic sales, marketing collateral, other practical marketing activities and other actions to implement a marketing plan.

Interest Relief:

Interest costs on new, rescheduled or existing borrowing plus set up cost.


Training of staff, for example to use new equipment or implement new processes. This includes the cost of trainers, materials and venues. Training which can be funded through existing public funding streams is not eligible.

Other Revenue Expenditure:

Other revenue expenditure to support the recovery of the business.

Capital Expenditure:

If your insurance company will not cover the full cost of a like for like replacement for equipment, this grant can be used to meet the deficit between the insured value you will receive and the cost of the equipment.

Approximate costings may be used for the application to facilitate speedy submission and approval but these should be as realistic as possible.


Grants are available for small and medium sized businesses (up to 250 fulltime equivalent employees) in Lancashire flooded during the heavy rain of December 2015. The emphasis is on supporting businesses with fewer than 50 employees as they are more likely to have additional capacity issues. Eligible businesses will:

  • have been trading on 5th December 2015
  • have been severely affected by the flood (either directly or indirectly)
  • be able to demonstrate viability prior to the flooding or on track to become so within one year
  • intend to continue trading and to maintain existing levels of jobs for a period of three years.

If you were not flooded but have been severely affected your situation will be looked at on a case by case basis.

If you were not flooded the following criteria apply:

  • If you experienced a prolonged disruption due to a loss of utilities – applications will be dealt with on a case by case basis.
  • If you were affected purely through reduced visitor numbers to the area then you will not be considered eligible.
  • Where there were structural reasons for the reduction in trade then your application will be considered eligible subject to a reduction in trade of at least 20% over a minimum of one month.
  • Where there is a structural reason for the reduction in trade and the effect is more severe a shorter period of time may be considered
  • Structural reasons for reduction in trade include, for example, bridge and road closures and customers not trading owing to flooding.
  • Factors which should be discounted when assessing impact include, for example, seasonal trading patterns, general economic climate and the fact that the grant funding will not cover costs that are covered by insurance or reasonably could have been and some of the costs/loss of trade could have been covered by business interruption insurance for loss of attraction or prevention of access.

State aid:

Businesses in sectors excluded from the De Minimis Block Exemption are not eligible for this scheme. Support for farming businesses is being covered separately by Defra.

This grant scheme falls within De Minimis so any grant amount must not take the applicant over the relevant De Minimis limit (200,000 Euros in a rolling three year tax period). For the road freight transport sector the maximum is 100,000 euros in a rolling three year tax period.

State aid includes, for example, European Funding, rate relief, deferral of VAT and income tax, other Government support.

What Next

What is the process?

You can apply by downloading and completing the application form and return it, along with a completed banking information form to

Boost Business Lancashire's gateway team can help with your application - for assistance call 0800 488 0057.

Submit your application via email, with supporting documents, to Boost who will process it. A local independent Grant Panel will decide grant awards. The relevant Council will then send out a grant offer letter with other relevant documents, or a rejection letter, within five working days. Should there be any queries, you may be asked for additional information which may delay the grant award decision.

When you return the Acceptance Form and Banking Information Form, the Local Authority will pay 100% of the grant offer electronically.

What is not covered?

  • Recoverable VAT
  • Costs that are covered or reasonably could have been covered by insurance

The grant must be used to aid recovery from the impact of flooding and should form part of a considered business recovery plan as detailed in the grant application. No application can be made as compensation for any loss incurred.


As you’ll appreciate as a tax payer, we do need to demonstrate that public money is being used properly, so you will need to provide expected outputs (like jobs saved). Your Growth Hub adviser will help you specify these.

Conditions of grant offer

Please refer to the separate Conditions of Grant document

If successful in obtaining the grant a Local Authority Liaison Officer has the right to confirm that the grant was spent on the activities identified above and has the right to ask for the monies to be repaid if no receipts have been kept or monies have not been clearly spent as agreed/intended.


Any queries please contact your Boost Growth Hub adviser on 0800 488 0057 or email

DEFRA Farming Recovery Fund - UPDATE!

The Farming Recovery Fund initially opened for applications for flood-affected farmers in Cumbria, Northumberland and parts of Lancashire on 18 December (2015).  Defra has decided to extend the fund to allow eligible farmers in Lancashire and Yorkshire impacted by Storm Eva, which hit over Christmas and Boxing Day (25 and 26 December 2015) to be able to apply.  For more information please visit the Farming Recovery Grant page on the government website:

The deadline for applications has now been extended from 18 March 2016 to 1 April 2016 to provide further time for affected farmers to apply. 

For details of how to apply click here

Farmers whose land has been flooded and are experiencing extreme hardship are advised to contact the RPA on 03000 200 301 as soon as possible and report their circumstances, so that they can access targeted support.

Download 'guidance_for_businesses_frg_v1_11_12_15.pdf'