New funding schemes announced by Scottish Government

The Scottish Government has recently announced a number of new funding schemes in order to assist businesses in dealing with the impact of the coronavirus COVID-19) outbreak. Full details and direction on how to apply can be found at the following link - https://findbusinesssupport.gov.scot/coronavirus-advice/sources-of-funding A summary of the newly announced schemes are as follows:

  1. Pivotal Enterprise Resilience Fund - This grant is for businesses that can play a critical role in supporting Scotland's recovery but need some immediate support. It might be to get back up and running or to maintain or diversify your current operations. You must meet these criteria in order to apply:
  • Your company has up to 249 employees that have been trading successfully before Covid19
  • Less than €50 million turnover or balance sheet total of €43 million
  • Can demonstrate the funding will support business to be viable
  • You were not in financial difficulty before 31 December 2019
  • You are a Fair Work employer or working towards becoming a Fair Work employer
  • You have a business bank account
  1. Creative or Tourism and Hospitality Enterprises Hardship Fund - The fund aims to support companies in tourism, creative industries and hospitality that are experiencing hardship, because they are ineligible for other COVID-19 Government grant support. The focus is to help companies manage cashflow commitments for the next three months and eligible companies can apply for funding up to £25,000. You must meet these criteria in order to apply:
  • Your company has up to 49 employees
  • You have experienced at least a 50% loss of current or projected revenue
  • You were not in financial difficulty before 31 December 2019
  • You are not in receipt of other COVID-19 government support, except the Furlough Scheme
  • You are not a pre-revenue company
  • You have a business bank account
  1. Newly Self-Employed Hardship Fund - Successful applicants will receive a one-off payment of £2,000. You must sign a declaration confirming that you meet all of the following criteria:
  • you became self-employed on/after 6 April 2019 (did not submit a tax return including income from self-employment for 2018-19)
  • over 50% of your individual income is from self-employment
  • your trading profits were below £50,000 in financial year 2019-20
  • you have lost business due to coronavirus and are suffering financial hardship as a result
  • you are ineligible for other COVID-19 related business support (including the Business Interruption Loan Schemes, Corporate Finance Fund, Job Retention Schemes, Future Fund, R&D Focussed SMEs Fund, HMRC Self-Employment Income Support Scheme, Non-Domestic Rates relief, Small Business Grant or other business support)
  • you 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
  • you trade as self-employed, not as a limited company or partnership
  • you have taken steps to limit costs and expenditure (including through schemes such as VAT deferral and seeking a mortgage payment holiday)
  • you do not have access to sufficient savings or other sources of income to meet basic needs
  1. From 5 May 2020, small business rate payers will be eligible for a 100% grant on their first property plus a 75% grant on all subsequent properties – So each additional property may be eligible for a Small Business Support Grant of £7,500 or a Retail, Hospitality, Leisure Support Grant of £18,500. A separate application is required for each additional property.