Support for business

Grants and loans

Grants

As of 17 March 2020, retail, hospitality and leisure businesses with a rateable value between £18,001 and up to and including £51,000 will be able to apply for a one-off grant of £25,000.

Businesses operating in an eligible premises that was in receipt of the Small Business Bonus Scheme and Rural Relief as at 17 March 2020, can apply for a one-off grant of £10,000.

If you applied for Nursery Relief or Disabled Relief but are eligible for the Small Business Bonus Scheme you can also get this grant.

Businesses that may qualify for both awards may make request for only the £25,000 grant.

NOT all types of retail, hospitality and leisure businesses will qualify for these grants. To establish if your business is eligible or not, please refer to the Scottish Government's website.

The Scottish Government has asked us to administer these grants. The Business Grant scheme is up and operational, please apply on our business grant web page.

Loans

If your business needs short term cash flow support a loan scheme is to be set up to support primarily small and medium-sized businesses to access bank lending and overdrafts. The Coronavirus Business Interruption Loan Scheme will provide lenders with a guarantee of 80% of a loan and businesses will be able to secure 12 months interest free repayments.

You should talk to your bank or finance provider as soon as possible and discuss your business plan with them. The scheme will be available from the week commencing 23 March 2020. Further information is available on the British Business Bank website.

Further funding

A second phase of funding is being made available by the Scottish Government for businesses, including the recently self-employed to help deal with the ongoing impact of COVID-19.

The new package of measures includes 120 million pounds to extend the Small Business Grant scheme to ensure that, in addition to a 100% grant on the first property, small business rate payers will be eligible to a 75% grant on all subsequent properties.

A further 100 million fund is also being made available to protect self-employed people and viable micro and SME businesses in distress due to COVID-19. This fund will be channelled through local authorities and enterprise agencies to target newly self-employed people and businesses who are ineligible for other Scottish Government or UK Government schemes.

Applications for the 100 million pound fund will be open by the end of the month, and the new arrangements for the Small Business Grant will be in place to receive applications on 5 May 2020.

Support for small B&B’s

Small B&B’s are an important part of Scotland’s tourism sector, particularly in rural areas. Some of these businesses were ineligible for other support due to not having a business bank account but will now be able to apply for a share of 3 million pounds of funding. The fund has been re-purposed from the Newly Self-Employed Hardship Fund and applications opened on 15 June 2020. You can find out more about this fund on our Bed and Breakfast Grant page.

Wellbeing Fund

The Scottish Government has set up a Wellbeing Fund to support third sector organisations that are providing important services for people as a result of coronavirus. Ten million pounds has already been allocated for immediate priorities and 7 million has been committed to provide around 2,000 charities. Businesses can register their interest on the Scottish Governments Wellbeing Fund web page.

Third Sector Resilience Fund

The Third Sector Resilience Fund (TSRF) is a 20 million pound emergency fund for charities, community groups, social enterprises and voluntary organisations working in Scotland delivered by Firstport, Social Investment Scotland and the Corra Foundation and provides grants up to £100,000. In addition there is up to a further 5 million available in fully flexible, 0% interest loans starting at £50,000. Third sector organisations can find out if they are eligible on the Third Sector Resilience Fund web page.

Support for coastal communities

Coastal businesses and third sector organisations can now benefit from a 7.2 million pound fund which is devolved to councils. The fund is from Scottish Crown Estate net revenues and is normally used for projects delivering coastal community benefit. The 26 councils in Scotland who have coastlines can use their remaining share of the fund which they have not yet allocated. We are considering how best to utilise our share of the funding alongside the range of other support being provided to businesses and third sector organisations by the UK and Scottish Governments. Further information can be found on the Support for coastal businesses web page.

Scottish Seafood Business Resilience Fund

Highland Seafood processors can now apply for support through the new 10 million pound Scottish Seafood Business Resilience Fund to support them during the coronavirus (COVID-19) outbreak.

Shellfish and seafood processing businesses will receive immediate priority for consideration. These businesses have been excessively impacted owing to early collapse of Chinese and Asian export markets, collapse of the EU market and global impacts on the hospitality markets for Scottish seafood.

Funding will be available to those businesses who have/are suffering severe hardship and more information can be seen on the Scottish Seafood Business Resilience Fund web page

Aquaculture Hardship Fund

An Aquaculture Hardship Fund has been set up for those businesses in the sector threatened by the effects of COVID-19. Hardship payments of up to £27,000 are being made available for around 100 businesses which make a full time living from shellfish growing and trout farming. Further information can be located on the Aquaculture Hardship Fund web page.

Bounce Back Loan Scheme (BBLS)

The BBLS is available as of 4th May 2020, enabling smaller businesses to access finance more quickly during the coronavirus outbreak. The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The government guarantees 100% of the loan and there won't be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year. You can apply for this loan on the Government's BBLS web page.

Emergency Loan Fund for SME Housebuilders

Housebuilders will be able to apply for short-term loans of up to one million pounds from the Scottish Government to support them through the coronavirus (COVID-19) outbreak.

Small and medium-sized enterprises (SMEs) with liquidity issues due to the temporary closure of the housebuilding sector will be able to apply for a one hundred million pounds from the Scottish Government emergency loan fund which aims to:

  • Safeguard jobs and protect suppliers
  • Support post-COVID-19 economic recovery and the continued supply of homes
  • Retain diversity of the housebuilding sector

SME housebuilders will be able to apply for loan support from 14:00 on Monday 18 May. For more information on the fund and to apply, visit the Scottish Governments Liquidity Support SME Housebuilders web page.

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