Coronavirus Restrictions Fund

Support provided by Scottish Government

What does this involve?

The Scottish Government has announced £40 million in funding for businesses and employees in Scotland affected by the temporary coronavirus (COVID-19) brake restrictions that came into effect from 9 October 2020.

The support funds will be administered by local authorities, providing one-off grants to hospitality and other businesses required to close by the brake restrictions regulations. 

The business closure fund will operate as a two-tiered scheme:

  • a smaller grant of £2,000 for businesses with a Rateable Value (RV) of up to and including £51,000
  • a larger grant of £3,000 for businesses with a RV of £51,001 or above, up to a maximum of £15,000 in total for any eligible business operating multiple premises

Local authorities will also take applications for a discretionary business hardship fund, with payments of £1000 or £1500, depending on Rateable Value, up to a total of £10,000 for eligible business operating multiple premises. This fund will support some companies that can remain open but are directly impacted by the restrictions, including those that supply businesses that must close.

Am I eligible?

For the business closure fund, you must be a hospitality or other business required by law to close (except for takeaway) under the new restrictions.  

For the discretionary business hardship fund, you must be:

  • a hospitality business or gym 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 affected by the regulations. You must be able to show your turnover has dropped by at least 25% during the brake period

To be eligible for either fund, your business must:

  • have been open and trading before 9 October 2020
  • have a business bank account - this is the account your grant will be paid into if your application is successful
  • have premises registered for Non-Domestic rates. Businesses that pay rates through their landlords rather than directly to a council are eligible to apply (you must provide a copy of your lease agreement as evidence)

Your business is not eligible if it has:

  • breached wider COVID regulations/requirements prior to local restrictions
  • connections to tax havens, as set out in the Coronavirus (Scotland) (No.2) Act 2020
  • provides takeaway food as its main operation

Applications are welcome from limited companies, sole traders, trusts and partnerships provided they meet the other criteria.

If your business operates multiple premises, you can apply for grants for each premise, applying only once to the local authority in which your business is headquartered. The maximum any one business can receive will be restricted, regardless of the number of premises. The upper limit for the  business closure fund is £15,000; the upper limit for business hardship fund is £10,000.

What does this cost?

There is no cost to apply for this fund.

Who is this for?

Businesses in Scotland which have been affected by the temporary brake restrictions put in place on 9 October 2020 to slow the spread of coronavirus (COVID-19).

How long does this take?

Applications will close on Tuesday 3 November at 5pm.

Payments will be made within 3 working days of notifying you of their decision.

Next steps

Visit the Scottish Government website for more information.

 

Support provided by Scottish Government

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