Applications are now open for the £40 million COVID-19 Restrictions Fund available to hospitality and other businesses required to close (except for takeaway) by these new restrictions. You have until Tuesday 3rd November at 5pm to apply via your local authority website.
The grants operates as a two-tiered scheme, with a smaller grant of £2,000 for businesses with a Rateable Value (RV) of under £51,000 and a larger grant of £3,000 for those businesses with a RV over £51,000. An upper limit of £15,000 in total will apply to any eligible business operating multiple premises.
Local Authorities are also inviting applications for a business hardship fund – with payments of £1,000 or £1500, dependent on Rateable Value – to support some businesses that remain open but are still significantly impacted by the restrictions, including those in the direct supply chains of firms that must close. An upper limit of £10,000 will apply in total to any eligible business operating multiple premises.
There is a finite budget available for this support. The first round of applications will be accepted from:
- Hospitality businesses and some gyms, required by these new regulations to close or operate in a restricted way and able to evidence 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 and able to evidence a minimum 25% reduction in turnover during the brake period
For clarity, retail and businesses that provide takeaway food as the core and established basis of their operations are not eligible for these closure or hardship funds.
Eligibility
To be eligible for this support you must meet the following criteria.
For the business closure fund you must be a hospitality or other business required by law to close under these new restrictions.
For the discretionary business hardship fund you must be:
- A hospitality business and some gyms, required by the regulations to operate in a restricted way
- A producer/wholesale business 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 and able to evidence a 25% reduction in turnover during the brake period
- Your businesses must have been open and trading before 9 October.
- You must have a business bank account. This is the account your grant will be paid into if your application is successful.
- Your business premises must be registered for Non-Domestic rates.
- Businesses that pay rates through their landlords rather than directly to a Council are eligible to apply (evidence to be provided through copy of lease agreement).
- Businesses which have breached wider COVID regulations/requirements prior to local restrictions are not eligible to apply.
- Businesses with connections to tax havens, as set out in the Coronavirus (Scotland) (No.2) Act 2020, are not eligible to apply.
- Applications are welcome from Limited Companies, Sole Traders, Trusts and Partnerships provided they meet the other criteria.
- Retail and businesses that provide takeaway food as the core and established basis of their operations are not eligible for these closure or hardship funds.
- How to apply:
The Government is working with local authorities to prepare and finalise all the administrative arrangements required to ensure efficient and effective application, processing, payment and appeal arrangements – and access to the information and advice you may need.
Local authority websites will be updated at 9 am on Tuesday 20th October, allowing business to complete applications.
Applications will close on Tuesday 3rd November at 5 pm.
Local Authorities will prioritise processing of applications with a view to making as many decisions as possible within the brake period while restrictions are in place. Local authorities will ensure any payment is made within 3 working days of notifying you of their decision.
Local authority websites will provide information on appeal arrangements.
