Information correct as of 16 June 2020
The Scottish Government’s hardship fund to help Bed & Breakfast and Small Serviced Accommodation Providers affected by COVID-19 is now open for applications.
The fund is specifically aimed to help those small businesses that do not have business bank accounts and have not been able to access support through other schemes. Successful applicants will receive a one-off payment of £3,000.
Applications are being managed by local authorities who will determine whether you meet the criteria set by the Scottish Government. It will take up to 10 working days from application and appraisal to funds being released.
The links to apply for East Lothian Council and Scottish Borders Council are below. Should you require any other local authority details you can find a list by following this link.
To be eligible for the grant, you must operate with a personal bank account that demonstrates business revenue and expenditure. You must also declare that you meet the following criteria:
- have been in business for at least a year and filed trading accounts for 2018-2019
- at least 35% of individual income is from affected business
- have 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 lost or anticipate losing business this year due to COVID-19 and are experiencing or anticipating financial hardship as a result
- are not in receipt of other COVID-19 related business grant support
- have taken steps to limit costs and expenditure (eg. through schemes such as VAT deferral / seeking a mortgage payment holiday
- do not receive working age benefit payments (Statutory Sick Pay, Employment and Support Allowance, Job Seekers’ Allowance, Income Support) and do not receive or have applied for Universal Credit or an advanced payment of Universal Credit
- do not have access to sufficient savings or other sources of income to meet basic needs
- hold 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
You will also be required to provide a cash-flow statement and evidence of trading including your trading accounts for 2018-2019 and 3 months of personal bank statements evidencing business revenue or expenditure on those statements during financial year 2019-2020.
You will also be required to provide 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)
And one of the following:
- evidence of trading, eg. a supplier or trade account (active)
- 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
You can find the full eligibility criteria here on the gov.scot website.
We would encourage businesses to check eligibility and apply as soon as possible. Should you require any assistance in providing financial information or clarification of the funding please do get in touch.