Scottish Government Strategic Framework Business Fund – Temporary Closure and Business Restrictions Grants

With effect from 2 November 2020: –

• Businesses that are required by law to close will be eligible for a grant every 4 weeks, for as long as the restrictions last. The Temporary Closure Grant will either be £2,000 or £3,000 depending on rateable values.

• Businesses that can remain open, but that require to modify their operations by law, will also be eligible for a grant every 4 weeks, for as long as the restrictions last. The Business Restrictions Grant will either be £1,400 or £2,100, again based on rateable values.

Examples of businesses required to modify their operations by law will include those which have to close earlier than normal or where the demand for their products or services has been reduced because of the pandemic.

When will the grants be paid?

Grants will be paid every 4 weeks in arrears as long as the restrictions last. The first payment of this grant funding is due on or around 30 November 2020.

Which businesses are eligible?

This will depend on where the business premises are located and what level of restrictions are in place at any point in time.

• You can apply if your business has been directly affected by the restrictions and the business type/sector is included in the Detailed Eligibility Criteria list below.

• You must have a business bank account. This is the account the grant will be paid into if the application is successful.

• The business premises must be registered for Non-Domestic rates.

Businesses that pay rates via their landlords, rather than directly to a Council, are eligible to apply but will need to provide evidence of this by submitting a copy of the lease agreement.

If your business operates multiple premises you can apply for a grant for each of them.

Applications can be made by Limited Companies (including Scottish Charitable Incorporated Organisations), Sole Traders, Trusts and Partnerships provided they meet the eligibility conditions.

How to apply

Applications must be made via your local authority website.

All premises should be included in one application which should be sent to and processed by the local authority area in which your business is headquartered. The maximum any one business can receive will be restricted, regardless of the number of premises.

The local authority websites will be updated during the week of 9 November 2020 to allow eligible businesses to apply.   Links to the local authority websites can be found in our blog of 22 October 2020.

Detailed Eligibility Criteria

Firstly check the protection level (tier) for your area:- 

https://www.gov.scot/publications/coronavirus-covid-19-protection-levels/ 

 

The following is taken from the Scottish Government guidance which can be found here:- 

https://www.gov.scot/publications/coronavirus-covid-19-strategic-framework-business-fund/pages/eligibility/ 

Businesses/premises required to close and eligible for a Temporary Closure Grant

Levels 0 and 1

Nightclubs – a nightclub is an entertainment premises that is open until at least 2 am at the weekend, and the main or routine operation of the premises is after 7 pm, and where the majority of the premises are given over to permanent dance floor facilities.  It must also:

• have a permanent DJ performance area booth
• be licensed for recorded music, dance facilities and live performance (at Q5 Activities Matrix within the Premises Licence Operating Plan) and
• the premises Licence Operating Plan at 5(g) must confirm it trades post 1am with music exceeding 85 DB and more patrons likely to be standing than seated

Level 2

• hospitality – pubs that do not serve food and do not have outdoor seating
• mobile close contact services – specifically  beauty and nail services (including make-up services), hair removal services, tattoo, piercing and body modification services, fashion design, dress-fitting and tailoring services, indoor portrait photography and art services, massage therapies, complementary and alternative medicine services requiring physical contact or close physical proximity between persons, but not osteopathy and chiropractic services, spa and wellness services
• leisure and entertainment – soft play, funfairs, indoor bowling, theatres, comedy clubs, sports stadiums, conference or exhibition centres, snooker/pool halls, music venues, casinos, nightclubs

Level 3

• pubs that do not serve food and do not have outdoor seating
• mobile close contact services
• cinemas, arcades, soft play, funfairs, Indoor bowling, Theatres, Snooker/pool halls, comedy clubs, sports stadiums, conference or exhibition centres, music venues, casinos, bingo halls, nightclubs

Level 4

• accommodation – hotels, B&Bs, self-catering, caravan and camp sites
• hospitality – restaurants, cafes, pubs, bars, social clubs
• retail – non-essential retail (which specifically excludes food retailers, including food markets, supermarkets, convenience stores and corner shops; off licenses and licensed shops selling alcohol (including breweries); pharmacies (including non-dispensing pharmacies) and chemists; newsagents; homeware, building supplies and hardware stores; petrol stations, car repair and MOT services, bicycle shops, taxi or vehicle hire businesses, banks, building societies, credit unions, short-term loan providers, savings clubs, cash points and undertakings which by way of business operate a currency exchange office, transmit money (or any representation of money) by any means or cash cheques which are made payable to customers; post offices; funeral directors; laundrettes and dry cleaners; dental services, opticians, audiology services, chiropody services, chiropractors, osteopaths and other medical or health services, including services relating to mental health; veterinary surgeons and pet shops; agricultural supplies shops and agricultural markets; storage and distribution facilities, including delivery drop off or collection points, where the facilities are in the premises of a business included in this sub-paragraph; )car parks; public toilets, livestock markets or auctions; garden centres, plant nurseries, outdoor markets, and outdoor car lots)
• close contact services – hairdressers, beauticians, tailors
• sport and exercise – indoor gyms, swimming pools, dance studios, exercise class/yoga studios
• leisure and entertainment – cinemas, arcades, soft play, funfairs, indoor bowling, theatres, comedy clubs, sport stadiums, conference or exhibition centres, snooker/pool halls, casinos, bingo halls, nightclubs
• visitor attractions

Businesses eligible for a Business Restrictions Grant

Level 0 

• theatres, sports stadia, conference and exhibition centres, comedy clubs, concert halls and music venues subject to a specific cap on the number of people who can attend an event

Level 1

• theatres, sports stadia, conference and exhibition centres, comedy clubs, concert halls and music venues subject to a specific cap on the number of people who can attend an event
• all hospitality subjected to time restrictions on their operations (i.e. no admittance after 9.30pm, closure at 10.30pm) by law – includes restaurants, cafes, pubs, bars, licenced sports and social clubs and licensed premises – but excluding takeaways

Level 2

• hotels and other licensed accommodation – no alcohol after 20:00. Meals until 22:00. alcohol allowed in rooms
• specified hospitality (subjected to restrictions such as no admittance after 7pm, closure at 8pm, alcohol only allowed with meal indoors, outdoor, no admittance after 9.30pm, closure at 10.30pm)
• alcohol without a meal allowed – includes restaurants, licenced cafes, pubs, bars, licenced sports and social clubs and licensed premises

Level 3

• restaurants, licenced cafes, pubs, bars, licenced social and sports clubs (no alcohol at any premise. Indoor and outdoor: no admittance after 5pm, closure 6pm)
• hotels and other licensed accommodation – no alcohol after 18:00. Meals until 22:00. Alcohol allowed in rooms
• sports and other facilities no longer able to provide group exercise, includes dance studios, exercise class/yoga studios

Who cannot apply?

You cannot apply if your business: –

• type or sector is not specifically mentioned in the list above

• has breached wider COVID-19 regulations/requirements prior to local restrictions

• has connections to tax havens

The information in this blog provides only an overview of Scottish Government guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed Scottish Government guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

Photo by Anastasiia Chepinska on Unsplash