New grants are now available to businesses

The Scottish Government has announced £40 million in funding for businesses and employees in Scotland affected by the temporary coronavirus (COVID-19) brake restrictions that came into effect from October 9.
By John A. MacInnes
Published 30th Oct 2020, 08:31 BST
The Western Isles Council will be administering the fund on behalf of the government.The Western Isles Council will be administering the fund on behalf of the government.
The Western Isles Council will be administering the fund on behalf of the government.

The support funds will be administered by local authorities, providing one-off grants to hospitality and other businesses required to close by the brake restrictions regulations.

Local authorities will process applications for a discretionary business hardship fund, with payments of £1000 or £1500, depending on Rateable Value, up to a total of £10,000 for eligible business operating multiple premises.

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This fund will support some companies that can remain open but are directly impacted by the restrictions, including those that supply businesses that must close.

For the discretionary business hardship fund, you must be:

A hospitality business or gym required by the regulations to operate in a restricted way (Accommodation providers are INELIGIBLE unless the offering includes a restaurant/cafe)

A producer/wholesale business based in Scotland supplying primarily short-life goods or produce to hospitality businesses affected by the regulations. You must be able to show your turnover has dropped by at least 25% during the brake period

To be eligible for either fund, your business must:

Have been open and trading before October 9, 2020

Have a business bank account - this is the account your grant will be paid into if your application is successful

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Have premises registered for Non-Domestic rates. Businesses that pay rates through their landlords rather than directly to a council are eligible to apply (you must provide a copy of your lease agreement as evidence)

Your business is not eligible if it has:

Breached wider COVID regulations/requirements prior to local restrictions

Has connections to tax havens, as set out in the Coronavirus (Scotland) (No.2) Act 2020

Provides takeaway food as its main operation

Applications are welcome from limited companies, sole traders, trusts and partnerships provided they meet the other criteria.

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If your business operates multiple premises, you can apply for grants for each premise, applying only once to the local authority in which your business is headquartered. The maximum any one business can receive will be restricted, regardless of the number of premises. The upper limit for the closure fund is £15,000; and for the hardship fund £10,000.

To make an application visit: https://www.cne-siar.gov.uk/social-care-and-health/coronavirus/business-resilience/

To discuss your application contact Business Gateway on [email protected]

Related topics:ScotlandScottish GovernmentCoronavirus