The purpose of this fund is to provide hardship relief to Bed & Breakfast and other Small Serviced Accommodation businesses who have not been able to access support through other schemes as a result of banking status. Successful applicants will receive a one-off payment of £3,000.
Eligible small serviced accommodation businesses include those offering bed & breakfast services - Guest Houses, Farmhouses, Inns, Restaurants with rooms. This fund excludes other types of non-serviced accommodation providers such as self-catering, caravan accommodation, Airbnb and so on.
Businesses applying to this Fund will operate with a personal bank account demonstrating business revenue and expenditure (applications can also be accepted from businesses using a business bank account if not in receipt of other COVID-19 business grant support). To be eligible you must meet all of the following criteria. If you receive the grant you can continue to work or take on other employment including voluntary work.
- Membership, accreditation, registration or simple listing with a recognised hospitality or tourism agency, representative body or marketing organisation (national or local) prior to March 2020. This can include a listing on digital or online marketing platforms, such as Booking.com, Airbnb, or a community website. However, this is restricted to only those businesses marketing B&B type provision not holiday, room or property letting.
- At least 35% of individual income is from affected business
- Trading profits below £50,000 in financial year 2019-20
- Can provide evidence of active trading up to March 2020 and intend to continue trading in the tax year 2020-21
- Have been in business for at least a year and filed a HMRC business tax return for 2018/2019
- Have lost or anticipate losing business this year due to COVID-19 and are experiencing or anticipating financial hardship as a result; (Demonstrated via a personal simple cash-flow statement to the period end September 2020)
- Not in receipt of other COVID-19 related business grant support (eg not in receipt of Non-Domestic Rates COVID-19 Grants, Small Business Grants, Creative, Tourism and Hospitality Hardship Grants). Applicants are permitted to make use of Coronavirus Job Retention Scheme and can be in receipt of SEISS.
- 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 or an advanced payment of Universal Credit
- Have taken steps to limit costs and expenditure for example through schemes such as VAT deferral and seeking a mortgage payment holiday
- Do not have access to sufficient savings or other sources of income to meet basic needs
- The business operates within the local authority to whom you are submitting this application
Frequently asked questions
Does the Council have discretion to consider my application if I do not meet the criteria or cannot provide all of the required evidence?
No, the eligibility criteria and evidence requirements have been set by the Scottish Government and Council officers are not permitted to vary from these.
I have received support from the Self-Employment Income Support Scheme via HMRC. Can I apply?
Yes - Applicants are permitted to make use of Coronavirus Job Retention Scheme and can be in receipt of SEISS. However you must NOT be in receipt of other COVID-19 related business grant support (eg not in receipt of Non-Domestic Rates COVID-19 Grants, Small Business Grants, Creative, Tourism and Hospitality Hardship Grants).
I pay Council Tax instead of Non Domestic Rates for my B&B, so am not eligible for a Small Business Support Grant. Can I apply to this Fund?
If you operate your business from a personal or business bank account applications, and meet all of the other eligibility criteria you can apply.
My application to the Creative Tourism and Hospitality Hardship Fund was rejected because I do not have a business bank account. Will I qualify for this Fund?
If you operate your business from a personal or business bank account and meet all of the other eligibility criteria you can apply. Please refer to the full list of eligibility criteria in the guidance.
Can I apply for this grant if the majority of my individual income is from the affected business?
No. You can only apply for this Fund if at least 35% of your total income is from the affected business.
I run my B&B as a limited company/limited partnership and am experiencing personal hardship. Can I apply?
If your B&B or serviced accommodation is a Limited Company you can apply if you meet all the criteria. Please refer to the full list of eligibility criteria in the guidance
Can I apply for this grant if I have applied for other support (such as Universal Credit) but not yet had a decision or received a payment?
Yes. If you are experiencing personal financial hardship whilst you wait for a decision you can apply
Can I apply for this grant if my business is seasonal and has not yet opened this year?
Yes, if you intend to continue trading in the tax year 2020-21 and meet all the other criteria you can apply.
Do I have to have applied for all of the other COVID-19 related business support and been rejected before I can apply for this grant?
You should establish whether you are eligible for other COVID-19 business support before applying. Use this business support finder to see what support is available for you and your business.
Is there a limit on the amount of savings I can have in order to apply?
There is no set limit on savings. You are not eligible to apply if you have sufficient savings or other sources of income to cover your basic needs
When is the closing date for applications?
If you are eligible and facing personal hardship you should apply immediately. The closing date will be set by the Scottish Government, but this scheme is expected to be short-lived and will be announced soon.
Do I have to repay the grant?
No, this is a grant and not a loan so does not need to be repaid. However, your application is subject to future audit and if any part is subsequently found to be incorrect you may be required to repay the grant. If you are found to have knowingly provided false information you could be subject to fraud referral.
Is the grant taxable?
Yes, you should declare any grant received as income for the tax year in which it was received