Scottish Government Island Equivalent Payment – Guidance
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*** If you have already submitted an application to the strategic framework business fund (sfbf) for the same premises you do not need to reapply. *** Whether approved or rejected, your previous SFBF application will be re-assessed against the eligibility criteria for the Non-essential Retail, Hospitality and Leisure Top-Up Payment and Island Equivalent Payment as appropriate. |
About the fund:
The Strategic Framework Business Fund was established by the Scottish Government to provide financial support via grant funding every 4 weeks to businesses registered for non-domestic rates who are impacted by protective restrictions under Scotland’s Strategic Framework.
Under Level 3 COVID-19 restrictions, many island businesses are legally allowed to operate and are therefore not eligible for support from the Strategic Framework Business Fund. Nevertheless, the restrictions have had severe impacts on island areas, meaning many businesses have been equally financially impacted as those under Level 4 restrictions, but without the equivalent government financial support.
In recognition of this, the Scottish Government has provided additional funding to establish an ‘Island Equivalent Payment’ Fund to provide the equivalent of Level 4 support to island-based businesses under Level 3.
Therefore, for the four-week period from 28 December 2020 to 24 January 2021, businesses in Level 3 island areas can now apply for a payment of £2,000 or £3,000 (dependent on rateable value) via a Temporary Closure Grant, which is equivalent to support available in Level 4 areas elsewhere in Scotland.
It is anticipated that the support will continue through February and March by way of further £2,000 or £3,000 grants, paid in arrears every four weeks. If the restrictions are altered by the Scottish Government during this period, the fund and grant awards will be subject to change.
Eligibility under the various protection levels can be found at the Scottish Government’s website or Find business support in Scotland. Eligibility for this funding is determined by the Scottish Government and local authorities do not have discretion to vary or amend this.
Also, based on Strategic Framework Business Fund criteria, eligible businesses in the retail, hospitality and leisure sectors will also qualify for a one-off top up payment of (Important: there is a deadline of the 22 February 2021 for applications to be considered for these top-up payments, but currently there is no deadline for the £2,000 or £3,000 grants above):
- £25,000 for larger hospitality businesses (rateable value of £51,001 or higher);
- £6,000 for smaller hospitality businesses (rateable value of £51,000 or less);
- £9,000 for larger retail and leisure businesses (rateable value of £51,001 or higher);
- £6,000 for smaller retail and leisure businesses (rateable value of £51,000 or less).
The hospitality top-up is however not payable to self-catering properties and B&Bs. They will be supported by targeted schemes currently being developed by the Scottish Government and sector representatives.
How to apply
Businesses who have already applied for the Strategic Framework Business Fund will not have to reapply. Top up payments and changes to ongoing payments will be made automatically.
For new applications, the first crucial step is to check if your business is eligible. You should go to the eligibility page and check if your type of business is included on the Level 4 list of eligible businesses. Please do not apply if your business type is not listed on the Scottish Government website. Business eligibility has been specified by the Scottish Government and the Council does not have discretion to change the criteria.
You will be required to submit supporting evidence/additional information – this is mandatory. You can digitally copy the required evidence/information in different ways, but please remember, whatever way you copy them, be it a scan, photo or screenshot, officers must be able to see all of the information in the document.
The evidence/information required is:
- A recent bank statement for this account, clearly showing the account details (including account holder name, account number and sort code). Please note that payments will be made to personal bank accounts only by exception. You will be required to provide evidence that the personal account is used to run the businesses.
- Any one of the following:
- Company: Certificate of Incorporation or Companies House registration number.
- Partnership: Partnership agreement or HMRC registration.
- Sole Trader: HMRC registration, Self-assessment documents or valid business insurance document.
- Trust: Constitution documents, HMRC registration or VAT registration document.
Once the Council has received your completed application form and supporting evidence, officers will review your application as soon as possible and may contact you by email to request further information in order for a decision to be made.
Full information on the Strategic Framework Business Fund (includes the Island Equivalent Payment and Non-essential Retail, Hospitality and Leisure Top-up) is available on the Scottish Government website, and for any queries please contact us.
