Publication - Factsheet

Coronavirus (COVID-19): Restrictions Fund

Published: 21 Oct 2020
Last updated: 2 Nov 2020 - see all updates

Eligibility and how to apply for a share of the fund to support businesses affected by COVID-19 restrictions.

Contents
Coronavirus (COVID-19): Restrictions Fund
Business Support Fund, 9 October to 2 November
The COVID-19 Restrictions Fund closed on 3 November. Any appeals to decisions, including any relevant documentation, should be submitted by close on Friday 11 December to your local authority. See the Strategic Framework Fund to find out what support is available to businesses in Scotland affected by COVID-19 restrictions from 2 November.

The new support fund

We have earmarked more than £48 million to support employees and businesses impacted by these restrictions, consistent with our established commitment to sustainable and inclusive growth and the Coronavirus (COVID-19): fair work statement.

We will provide support to businesses closed or impacted by these restrictions -  see below for more detail.

We have worked with the STUC, employer organisations and HMRC to deliver support for businesses to contribute towards the 20% of salary costs for furloughed workers that employers face in October. We provided grant funding to businesses required to close by law for each of the premises  where they have had to furlough staff. A grant of £1650 covered the period up to and including 31 October.  Local Authorities were responsible for making those payments.

The temporary business support funds were administered by Local Authorities, providing one-off grants to businesses very directly impacted by the restrictions implemented on 9 October 2020. New arrangements came into effect, as appropriate, from 2 November. 

A COVID-19 Restrictions Fund was made available to hospitality and other businesses required to close (except for takeaway) by the extended restrictions and for the period up to 2 November. It operated as a two-tiered scheme, with a smaller grant of £2,875 for businesses with a Rateable Value (RV) of up to and including £51,000 and a larger grant of £4,310 for those businesses with a RV of £51,001 and above. Grants were available per premise; an upper limit of £21,000 in total applied to any eligible business operating multiple premises.

At the same time, Local Authorities invited applications for a business hardship fund - with payments of £1,440 or  £2155, dependent on Rateable Value -  to support some businesses that remain open but were still significantly impacted by the restrictions including those in the direct supply chains of firms that were required to close. Grants were made available per premise; an upper limit of £14,000 applied in total to any eligible business operating multiple premises.

There was a finite budget available for this support and to minimise the risk that applications from businesses exceeded the funding available we targeted applications at:

  • the hospitality businesses and some gyms, required by regulations to operate in a restricted way
  • producers/wholesale businesses based in Scotland supplying primarily short-life goods or produce to hospitality businesses required by the regulations to close or operate in a restricted way and able to evidence a minimum 25% reduction in turnover during the brake period

For clarity, retail and businesses that provide takeaway food as the core and established basis of their operations were not eligible for these closure or hardship funds.

We are working closely with COSLA and all local authorities to deliver the Restrictions Fund, including monitoring arrangements to record the numbers of applications received and payments made. Information for Closure and Hardships Funds which applied for the period 9 October– 2 November will be published on this website, and we will ensure this information is updated regularly.

The £11 million contingency fund will support nightclubs and soft play businesses that do not fall into the above categories but remain closed. It runs as a 3-tiered scheme with:

  • a £10,000 grant for businesses with a rateable value (RV) of up to £18,000,
  • a £25,000 grant for businesses with a RV of between £18,001 - £51,000,
  • a £50,000 grant for businesses with a RV of above £51,001.

Businesses operating multiple premises will be eligible to claim one full grant plus grants of up to 75% on subsequent properties.  

Full details on the contingency fund are available

Table 1: Funding for the 23 day restriction period from 9 October to 2 November 2020

9 October to 2 November 2020

Fund Name

Who’s Applicable

How to Apply

Rateable Value (RV)

Grant Available

Closure Fund

Relevant Business premises in the 5 health boards that had to close due to regulations.

Applications opened on 20 October and closed at 5pm on 3 November. Applications were available on local authority websites. If you applied prior to the grant top up, you did not need to reapply. 

RV of up to and including £51,000.

£2875

RV of £51,001 and above

£4,310

Upper limit for eligible businesses with multiple premises.

£21,000

£9 million funding to contribute to Furlough Costs and support employees (applied for alongside closure fund)

 

Business premises in the 5 health boards that were required to close by law and furloughed employees.

The furlough payment was applied for alongside the Closure Fund. The closure fund was amended to include the furlough grant, covering new applicants. Anyone who had already applied and indicated staff had been furloughed was contacted by their local authority.

N/A

£1650

Hardship Fund

Supports business premises that remain open but are significantly impacted by the restrictions including those in the direct supply chains of firms that must close. 

Applications opened on 20 October and closed at 5pm on 3 November. Applications were available on local authority websites. If you applied prior to the grant top up, you did not need to reapply. 

RV of up to and including £51,000.

£1,440

RV of £51,001 and above

£2155

Upper limit for eligible businesses with multiple premises.

£14,000

Contingency Fund of £11 million

Businesses not covered by the above funds (night clubs and soft play)

You do not need to apply for the contingency funding. Your local authority will contact you shortly to begin the process of gathering information in support of your claim.

RV of up to and including £18,000

£10,000

RV of between £18,001 - £51,000

£25,000

RV of above £51,001

£50,000

Businesses with multiple premises

One full grant (depending on RV) plus grants of up to 75% on subsequent properties.


First published: 21 Oct 2020 Last updated: 2 Nov 2020 -