COVID-19 Restrictions Fund

Scottish Government has announced a new support mechanism for businesses impacted by the new COVID-19 restrictions.

The following support has been announced.

  • Local Authorities will invite applications for a discretionary business hardship fund –  with payments of up to £1500 –   will support some businesses that remain open but are directly impacted by the restrictions, including those in the direct supply chains of firms that must close
  • Up to £9 million to help with the costs of re-furloughing staff, by supporting the 20% salary contribution required
  • A discretionary fund of up to £11 million to support businesses which need support but don’t fall into the above categories (e.g. soft play centres that have been unable to reopen)


To be eligible for this support you must meet the following high-level criteria:

  • For the business closure fund you must be a hospitality or other relevant business  required by law to close under the brake restrictions.
  • You must have a business bank account. This is the account your grant will be paid into if your application is successful
  • Your business premises must be registered for Non-Domestic rates. Businesses that pay rates through their landlords rather than directly to a Council are eligible to apply (evidence to be provided through copy of lease agreement).
  • Businesses which have breached wider COVID regulations/requirements prior to local restrictions are not eligible to apply.
  • Businesses with certain connections to tax havens, as set out in the Coronavirus (Scotland) (No.2) Act 2020, are not eligible to apply.
  • Applications are welcome from Limited Companies, Sole Traders, Trusts and Partnerships provided they meet the other points of criteria.

Detailed criteria for the discretionary business hardship fund is in development and will be published as soon as possible, but will include hospitality and other businesses specified in the nationwide restrictions but not required to close, and their immediate supply chains.

How to apply

Applications will go-live in all local authority areas as soon as is feasible. Again details will be provided as planning work progresses. At this point in time there is no merit in contacting your local authority.

Page updated 20/10/2020

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