As a result of the additional restrictions placed upon businesses from 9 October 2020, the Scottish Government have provided a new support fund for those businesses affected. The Covid 19 Restrictions Fund is provided by way of grant funding administered by Local Authorities. As the restrictions were extended on 21 October 2020 for a further week than originally announced and will now remain in place until 2 November 2020, the grants originally announced have been increased proportionately. The below information reflects the up to date amounts available through this fund as announced on 21 October 2020.
There are 2 strands to the Covid-19 Restrictions Fund:
Business Closure Fund
The Business Closure Fund is available to businesses in the hospitality sector which have been ordered to close by the additional restrictions. Businesses which have closed their core service but continue to provide a takeaway service during, are not excluded from the grant.
The level of grant is based on the rateable value of the premises. For premises with a RV up to and including £51,000 the grant is £2,875. For premises with a RV of £51,001 and above, the grant is £4,310. Businesses which operate multiple premises can apply for a grant for each site, however there is an upper limit of £21,000 which applies to these businesses.
Business Hardship Fund
The Business Hardship Fund is available for businesses which have not been ordered to close but have been significantly affected by the additional restrictions implemented on 9 October. As there is scope for a wider number of applications this is a discretionary fund and in order to target the businesses where funding is deemed to be most necessary such as:
This fund is again based on rateable value, with grants available for £1,440 or £2,155 depending on the RV. There is also an upper limit of £14,000 for businesses operating multiple premises. As this is a discretionary fund more evidence of hardship will be required to be provided along with the application.
|Rateable Value (RV)||Business Closure Fund||Business Hardship Fund|
|£0 - £51,000||£2,875||£1,440|
|Multiple Premises Limit||£21,000||£14,000|
These funds are available across Scotland in all Local Authority areas. The application is made through your Local Authority website (https://www.gov.scot/publications/coronavirus-covid-19-restrictions-fund/pages/local-authority-website-links/) and applications for both funds close on Tuesday 3 November at 5pm.
Job Support Scheme
The new Job Support Scheme will replace the current Furlough Scheme on 1st November, meaning that any business required to close their premises due to local or national coronavirus restrictions will receive government support to pay two thirds of their employees’ salaries, up to a maximum of £2,100 per month. Click here to read the full update.
If you are looking for any assistance please get in touch.