£40m Coronavirus Restrictions Fund

The Scottish Government has published information on the £40m of funding aimed to support businesses that have been affected by the recent COVID-19 restrictions that came into force from 9 October 2020.

Administered by local authorities, the finite budget has been designed to offer targeted support to those who need it most. Whilst the Scottish Government works with local authorities to prepare and finalise the application process, we have covered the financial packages that will be available below.

The Business Closure Fund

The Business Closure Fund will be open to hospitality and other businesses that have been required to close (except for takeaway) by law under the new restrictions. Operating as a two-tiered scheme determined by the businesses rateable value (RV), a £2,000 grant will be offered to businesses with a RV of under £51,000 and a £3,000 grant for those businesses with a RV over £51,000.

Businesses operating multiple premises will be eligible for an upper limit of £15,000 in total.

The Business Hardship Fund

Businesses that are not eligible for the Business Closure Fund but are significantly impacted by the restrictions, including those in the direct supply chains of firms that have closed, can apply for the Business Hardship Fund. This discretionary fund will provide payments of £1,000 or £1,500, dependent on the businesses RV. An upper limit of £10,000 will apply in total to any eligible business operating multiple premises.

To be eligible for the Business Hardship Fund you must fall into one of the following categories:

• Hospitality businesses or some gyms, required by these new regulations to close or operate in a restricted way that can provide evidence of a minimum 25% reduction in turnover during the brake period.
• Producers/wholesale businesses based in Scotland supplying primarily short-life goods or produce to hospitality businesses required by the regulations to close or operate in a restricted way that can provide evidence of a minimum 25% reduction in turnover during the brake period.

Your business is not eligible for funding if it provides takeaway food as its main operation.

Local authority websites will be updated at 9am on Tuesday 20th October, allowing for applications from eligible businesses. Applications will close on Tuesday 3rd November at 5pm.

Processing of applications will be prioritised within the brake period and payments will be made within 3 working days of notifying a business with a decision.

To discuss how these announcements will affect your business, get in touch with one of our team by calling one of our offices.