COVID: ADDITIONAL SUPPORT FUNDS
On April 30 the Cabinet Secretary for Economy, Fair Work and Culture launched a package of additional grant support for small and medium sized businesses (SMEs) and newly self-employed people. The following funds made up this package of support:
- The Pivotal Enterprise Resilience Fund (PERF), managed by the Enterprise Agencies, provided bespoke grants and wrap around business support to viable but vulnerable SMEs vital to the local or national economic foundations of Scotland
- The Creative, Tourism & Hospitality Enterprises Hardship Fund (CTHEHF), managed by the Enterprise Agencies with support from Creative Scotland and VisitScotland, provided grants of up to £25,000 to small and micro creative, tourism and hospitality companies not in receipt of business rates grants
- The Newly Self-Employed Hardship Fund (NSEHF), managed by Local Authorities, provided £2,000 grants to the newly self-employed who were facing hardship but ineligible for UK support (as they became self-employed since April 2019)
This was extended on 15 June to include:
- The Bed and Breakfasts Hardship Fund (B&BHF), managed by Local Authorities, provided £3,000 grants for Bed and Breakfasts and Small Serviced Accommodation who were facing hardship but ineligible for other support as they were operating under a personal bank account
These funds have supported 4,023 businesses and 5,602 self-employed people, with close to £160m in funding. This is almost £60m more than the initial funding allocation at launch of £100m. Support of this kind was not available anywhere else in the UK.
Due to demand the PERF received £75m in additional funding post-launch, taking the total fund allocation to £120m. The CTHEHF received £10m in additional funding, taking total allocation to £30m. The combined total allocation of funding for NSEHF and B&BHF was £34m. This package of support, and the £1m top up to Creative Scotland’s Bridging Bursaries scheme in the not-for-profit sector, made up the £185m additional support funds.
All remaining funding following the completion of these funds has been reallocated to meet the emerging needs of business, including towards the following:
- Lifeline support for Performing Arts Venues
- Investing in Scotland’s entrepreneurs and innovators
- Further funding for tourism
- Funding boost for science centres
A very small number of applications are still subject to the appeals and reconciliation process. As such, all data relating to awards should be viewed as of 4 August 2020. Any changes will, however, be minimal.
Table 1 shows the number of applications, eligible applications, and the number of awards (to date) for the PERF and CTHEHF. Both schemes were administered by Scotland’s Enterprise Agencies.
All eligible applications to the CTHEHF that could exhibit a cash flow gap, in-line with the set criteria, received a grant.
Demand for the PERF was very high, that is why we added an additional £75m to this fund. Whilst being sector agnostic, it was designed to support a particular type of pivotal small and medium-sized business. Successful applicants were able to provide evidence of, or demonstrate impact in, one or more of the following areas:
- Supporting Scotland’s productive capacity – through wage levels, employment, exports, Research & Development and innovation
- Local economic importance which would include areas such as, employee numbers relative to place, delivery of essential services, wider economic and community value, plus the socio-economic importance of the business in remote and rural areas
- Leverage on wider business community by demonstrating the impacts of your business on supply chain at a local, regional and national level
- Being a supplier or potential supplier to NHS or other COVID-19 vital services
- Being a supplier to other essential businesses
- Demonstrating a need to rapidly scale up or diversify due to COVID-19
TABLE 1 – Summary of Covid Fund Applications
|Creative, Tourism & Hospitality Hardship Fund||Pivotal Enterprise Resilience Fund||Total|
|Number of applications*||3,412||5,069||8,481|
|Number eligible applications**||1,908||3,995||5,903|
|Number of grants offered||1,893||1,763||3,656|
Note: 4ᵗʰ August data
*excluding duplicates, entries created but never submitted, withdrawn applications, etc
**excluding failing the bank check, did not provide sufficient information, or failing on basic eligibility
Table 2 shows the total number of applications received and grants awarded (to date) for the NSEHF and B&BHF. Both Schemes were administered by Local Authorities.
The NSEHF was designed to offer a one off grant of £2,000 to people who became self-employed from 6 April 2019 and were suffering hardship. This was designed to fill a gap in existing UK Government support for the newly self-employed. Some of this funding was repurposed to create the B&BHF, offering £3,000 grants to B&Bs and Small Serviced Accommodation who operated under a personal bank account.
TABLE 2 – Summary of Covid Fund Applications
|Number of applications||8,002||639||8,641|
|Number of grants awarded||5,602||367||5,969|
Note: 4ᵗʰ August data
Fund breakdowns on following pages are:
- Pivotal Enterprise Resilience Fund Grants Offered by Enterprise Agency
- Pivotal Enterprise Resilience Fund Grants Offered by Sector
- Pivotal Enterprise Resilience Fund Grants Offered by Local Authority
- Creative, Tourism & Hospitality Enterprises Hardship Fund by Enterprise Area
- Creative, Tourism & Hospitality Enterprises Hardship Fund by Sector
- Creative, Tourism & Hospitality Hardship Fund Grants Offered by Local Authority
- Newly Self-Employed Hardship Fund Applications Received, Grants Awarded, Value of Grants Awarded by Local Authority
- Bed and Breakfast Hardship Fund Applications Received, Grants Awarded, Value of Grants Awarded by Local Authority