Bed and Breakfast Hardship Fund

Support provided by Scottish Government

What does this involve?

This fund is managed by your local authority (council). Please get in touch with them, if you have any questions.

As of 3 July the criteria of this fund was extended to cover eligible businesses who operate with a business bank account. Both personal and business bank accounts are now accepted.

The aim of this fund is to support B&B and other Small Serviced Accommodation businesses who have not been able to access support through other schemes. This funding is provided by the Scottish Government and administered by local authorities.

Successful applicants will receive a one-off payment of £3,000.

The fund will close to new applications on 10 July.

Am I eligible?

You must sign a declaration confirming that you meet all of the following criteria:

  • Membership, accreditation, registration or simple listing with a recognised hospitality or tourism agency, representative body or marketing organisation (national or local) prior to March 2020
  • At least 35% of individual income is from affected business
  • Trading profits below £50,000 in the financial year 2019-2020
  • Can provide evidence of active trading up to March 2020 and intend to continue trading in the tax year 2020-21
  • Have been in business for at least a year and filed trading accounts for 2018-2019
  • Have lost or anticipate losing business this year due to coronavirus and are experiencing or anticipating financial hardship as a result; demonstrated via a simple personal cash-flow statement (300 words or less) to the period end September 2020
  • Not in receipt of other COVID-19 related business grant support. (e.g. not in receipt of Non-Domestic Rates COVID Grants, Small Business Grants, Creative, Tourism and Hospitality Hardship Grants)
  • Do not receive working age benefit payments (Universal Credit, Statutory Sick Pay, Employment and Support Allowance, Job Seekers’ Allowance, Income Support) or have applied for but not yet started receiving Universal Credit or an advanced payment of Universal Credit
  • Have taken steps to limit costs and expenditure (eg. through schemes such as VAT deferral / seeking a mortgage payment holiday)
  • Do not have access to sufficient savings or other sources of income to meet basic needs
  • The business operates within the local authority to whom you are submitting this application

You will be asked to provide documentary evidence of your status and eligibility for the grant. Local authorities will then determine whether you meet the criteria, which has been set by the Scottish Government.

You will need to provide:

  • Proof of identity, ideally photographic (for example, a valid passport or driving licence)
  • Proof of business address (for example, a recent council tax bill or utility bill)
  • Evidence of membership, accreditation, registration or listing with a recognised hospitality or tourism agency, representative body or marketing organisation; national or local (for example, e-copy of quality assurance certification to a simple online listing with local tourism board or entity)
  • Personal cash-flow statement to the period end September 2020, demonstrating hardship from loss of business income (300 words or less)

You will also be asked to provide evidence of active trading up to March 2020 via four forms of financial and trading evidence:

1) Trading accounts for 2018-2019

2) 3 months of bank statements evidencing business revenue or expenditure on those statements during financial year 2019-2020

3) One of the following:

  • HMRC unique tax reference
  • VAT registration number
  • Business Registration Number (provided by Companies House, Charities Commission, Mutuals, Public Register and other statutory and regulatory bodies that you must file accounts and annual membership details with)

4) Any one of the following:

  • Evidence of trading, eg. a supplier or trade account (active). Or other evidence of recent business activity to support your claim (eg correspondence with customers or suppliers)
  • Valid business insurance
  • Current marketing materials for your business, eg business website, active social media – provide web links

Successful applicants will receive a one-off payment of £3,000.

What does this cost?

There is no cost to apply.

How long does this take?

It will take up to 10 working days from application and appraisal to funds being released for approved applications.

Important information

If you receive the grant you can continue to work or take on other employment, including voluntary work.

Next steps

You need to apply directly through your Local Authority (council). If you have any questions or concerns about this fund, please contact your Local Authority for more information: 


Support provided by Scottish Government

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