More support for small businesses
Grants extended to help more companies in need.
Small businesses which share properties but do not pay business rates are now eligible to apply for grants to help with the impact of COVID-19.
The extension to the Small Business Grant Fund will apply to firms occupying shared office spaces, business incubators or shared industrial units and who lease the space from a registered, rate-paying landlord. Separately, eligibility has also been extended to companies occupying multiple premises with a cumulative value of more than £51,000.
From today, eligible businesses will be able to apply to their local authority for grants of up to £10,000.
It has also been confirmed that the Small Business Grant and Retail, Hospitality and Leisure Grant schemes will close for new applications on 10 July. Latest figures up to 2 June show that £824.541 million has been distributed to 72,622 businesses across Scotland through the schemes, but that new applications have slowed in recent weeks.
Finance Secretary Kate Forbes said:
“Our comprehensive package of business support is now worth more than £2.3 billion. Our programme is kept under constant review, and we are always looking for ways to extend eligibility to help more businesses. That is precisely what we are doing today.
“New applications for the Small Business and Retail, Hospitality and Leisure Grant schemes have slowed in recent weeks as large numbers of businesses have already applied. We are committed to ensuring every penny we receive from the UK Government for business support - and more – will be passed to businesses. It is essential that we do not allow funds to sit for too long in schemes that are attracting few applications, so we have decided to bring these to a close next month. That will mean that any remaining money can be re-routed to help businesses in other ways, as we have already started to do for the Pivotal Enterprise Resilience Fund.
“I would encourage the owners of any eligible small business which needs support to consider applying through their local authority during the next five weeks and before 10 July.”
Further details on these grant schemes.
Applications for a Small Business Support Grant may now be made to the appropriate local authority from tenants that are a registered business or partnership, have a lease signed before 17 March 2020, employ at least one person and have a business bank account.
From 5 May, the Small Business and Retail, Hospitality and Leisure Grants were extended to businesses with multiple properties. This included businesses with a number of properties whose cumulative rateable value exceeded £35,000 (making them ineligible for the Small Business Bonus Scheme, thereby preventing them from accessing the Small Business Grant) and whose individual rateable value does not exceed £18,000 (thereby preventing them from receiving a Retail, Hospitality and Leisure Grant). To date, the cumulative rateable value of all such properties held was capped at £51,000, but from 8 June, this is increased to £500,000.
Schedule 3.1 of the Scottish Government’s Summer Budget Revision confirms the budget for the Small Business and Retail, Hospitality and Leisure Grants as £1.202 billion.