As Scottish Finance Secretary Kate Forbes unveils a three-month extension on rates relief for retail, hospitality, and leisure businesses to June 30 in the Scottish Budget draft, let’s take a look at some of the wider financial support that’s available for Scottish businesses during COVID-19.
This is in no way an exhaustive list. You’ll find that at findbusinesssupport.gov.scot, and your business may be eligible for more than one fund. Scottish-based businesses are also able to apply for UK Government funds.
Strategic Framework Business Fund
If your business is required to close by law or to significantly change its operations due to COVID-19 restrictions, you could be eligible to apply for grant funding that will cover the period of any closures or restrictions.
You can apply for
- Temporary closure grant – £2,000 or £3,000 (depending on rateable value) if your business is required to close by law.
- Business restrictions grant – £1,400 or £2,100 (depending on rateable value) if your business can remain open but is specifically required to modify its operations by law, for example having to close earlier than normal. This does not include a reduction in the demand for your products or services because of the pandemic.
The deadline for applications is 5 February 2021.
The earliest claim date is 2 November 2020 and you can still apply even if you are required to close or modify your operations for less than four weeks.
Applications to the Strategic Framework Business Fund should be made through your local authority website and grants will be paid every four weeks in arrears as long as restrictions last.
In February 2021, eligible businesses will receive a Level 4 closure grant of £2,000 or £3,000, regardless of any change to the level of restriction during the period.
Local Authority Discretionary Fund
£60 million was earmarked in December 2020 for Scottish businesses that have not been eligible for previous business support grants under what’s called the Local Authority Discretionary Fund. If your business is still being adversely impacted by Tier 4 restrictions and you have not received any support, you are eligible to apply.
Local authorities manage this fund and funds will be issued at their discretion. They will assess which businesses have not received support until now and are most in need.
Information will be published on individual local authority websites.
January 2021 top-up grant support announcements
A top-up to the grant support available for hospitality, retail, and leisure businesses across Scotland closed by level 4 restrictions were announced in January.
You don’t need to re-apply for the top-up grant if you’ve already applied for the Strategic Framework Business Fund. It will be issued automatically.
Eligible businesses will get a one-off grant of:
- £25,000 for larger hospitality businesses (those with a rateable value of £51,001 or more ) on top of the 4-weekly £3,000
- £6,000 for smaller hospitality businesses (those with a rateable value of £51,000 or less) on top of the 4-weekly £2,000
- £9,000 for larger retail and leisure businesses (those with a rateable value of £51,001) on top of the 4-weekly £3,000
- £6,000 for smaller retail and leisure businesses (those with a rateable value of £51,000 or less) on top of the 4-weekly £2,000