As well as government based support many National Organisations and lenders have created industry specific grants and aid, development opportunities and low-risk lending incentives. These can be used in tandem with government grants and should not affect your personal or business credit rating.
- A package worth £60 million agreed with the water industry to help businesses facing difficulties with water charges during the outbreak.
- A £2 million fund launched by Creative Scotland to help artists and freelancers with grants of between £500 and £2,500.
- Coronavirus Business Interruption Loan Scheme
- Bounce Back Loan for Small Businesses and the self-employed to borrow between £2,000 and £50,000.
To Come: Created as part of the Scottish Government’s £185m Business Support Fund, the Performing Arts Venues Relief Fund will help venues who cannot yet reopen to their audiences due to the ongoing impact of coronavirus (COVID-19). The fund will be run by Creative Scotland and we will share details as they become available.
Other Financial Help
Note: This fund application closes on 31st July
This Scottish Government fund is managed by the Scottish Investment Bank, the investment arm of Scottish Enterprise. It’s designed to support early-stage, high-growth, innovative Scottish companies who have been negatively affected by the COVID-19 pandemic. It’s aimed at companies where COVID-19 has had a clear impact on revenue, working capital costs, or access to equity investment, resulting in a cash shortfall, a diversion of resources away from growth activities or a delay in achievement of development or investor milestones. It can provide from £50,000 to £300,000 per company.
The funding is a combination of convertible loan and grant, although applications will also be accepted for a convertible loan only. The grant element does not need to be repaid, and will only make up a maximum of 20% (subject to eligible costs) of any funding awarded.
Am I eligible?
Your company must meet the following criteria to apply, which we’ll check as part of our appraisal process. If you don’t meet the minimum criteria (or can’t sufficiently evidence it) your application will not proceed to appraisal. If your company is part of a group, it must be the parent company that applies, and the parent company that meets these criteria.
To be eligible, you must:
- Be based in Scotland or have the majority of your operations in Scotland
- Be a private company limited by shares
- Have been incorporated between 31 December 2009 and 31 December 2019
- Have 2-49 full time equivalent employees, with at least 80% based in Scotland. This doesn’t include contractors or employees on zero-hours contracts. If your employee numbers are expected to change, then use the number you expect to have on 7 September 2020
- Be a small or micro enterprise – a turnover of less than €10 million or a balance sheet value of less than €10 million
- Be an early stage company with a high growth potential, operating in or targeting international growth markets. You must have raised external equity finance in the last 24 calendar months, or be planning on doing so in the next 12 months. This equity can’t come from founders, family, friends or crowd funding.
- Be a high growth and innovative company – you must have registered at least one technology right (such as a patent, utility model, design right or protection certificate) in the last 24 calendar months, OR have received an R&D or innovation grant or prize of minimum £50,000 by an EU institution, EU body or regional/national research of innovation support scheme in the last 24 calendar months, OR have received (or are working through a formal application for) approval from a regulatory body such as Medicines and Healthcare Products Regulatory Agency (MHRA), U.S. Food and Drug Administration (FDA) or CE certification mark, or equivalent OR have previously raised external equity finance (not including founders, family, friends, and crowd funding). You’ll still be eligible if you expect to have done one of these things by 7 September 2020
- Be able to show plans to use this funding for eligible costs and activities (as listed under ‘what can this funding be used for?’)
- Be committed to Fair Work First. Find out more about Fair Work First.
Meeting these eligibility criteria does not guarantee you’ll receive funding. This is a competitive funding call and only the most highly graded companies will receive funding.
The Chancellor’s much-anticipated Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.
The scheme is open for all UK based businesses that have been negatively affected by coronavirus, and comes with a 100% government guarantee as well as a waiver on fees and interest for the first 12 months.
The scheme will be delivered through a network of accredited lenders that have been working with government to allow them to agree no repayments for the first year, and a low rate of interest for the remaining period of the loan (up to 6 years).
How to apply
The full rules of the scheme and guidance on how to apply is available on the British Business Bank website
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS). If you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.
The Coronavirus Business Interruption Loan Scheme (CBILS) is now available through participating lenders and can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.
Please note that crucially, the scheme simply provides the lender with a government-backed guarantee and the borrower always remains 100% liable for the debt. However, at this difficult time it may potentially change a ‘no’ credit decision from a lender to become a ‘yes’. CBILS supports term loans, overdrafts, invoice finance and asset finance.
Smaller businesses from all sectors can apply. To be eligible an SME must be UK-based in its business activity, with annual turnover of no more than £45m. You should also have a borrowing proposal which would be considered viable by the lender were it not for the current pandemic.
- Up to £5m facility: The maximum loan value will be £5m on repayment terms of up to six years.
- 80% guarantee: The scheme provides the lender with a government-backed, partial guarantee (80%) against the outstanding facility balance, subject to an overall cap per lender.
- No guarantee fee for SMEs to access the scheme: No fee for smaller businesses. Lenders will pay a fee to access the scheme.
- Interest and fees paid by Government for 12 months: The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees.
- Finance terms: Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
The Scottish Government have set up a business support helpline (0300 303 0660) for all business support enquiries in Scotland and request that businesses needing guidance contact them in the first instance on this number.
Additional advice is available here: https://findbusinesssupport.gov.scot/coronavirus-advice/
NOTE: Closing date: 31st July 2020 at midnight
The Prince’s Trust have set up a £5M Enterprise Relief Fund for 18-30 year old business owners who are self-employed and/or running their own business.
Grants can be used to maintain core business operations during the crisis, as well as meet any existing financial commitments, such as paying for essential equipment or settling invoices from suppliers. Additionally, grants will also support young people to diversify their business to respond to opportunities created by the crises. In conjunction with grants, the initiative will offer one-to-one support and guidance to any applicants who need it.
If you are not between 18-30, but if you were in the last 4 years and received help from The Prince’s Trust at the time you started up, you can still receive help.
Please do pass this information to anyone who may be eligible. More information can be found on the Prince’s Trust website.
The Third Sector Resilience Fund (TSRF) is a £20m emergency fund for charities, community groups, social enterprises and voluntary organisations working in Scotland. The fund will support organisations that already deliver services and products and that find themselves in financial difficulties directly as a result of the coronavirus pandemic.
The primary intention of the fund is to help third sector organisations to stabilise and manage cash flows. The fund will be complemented by specialist business advice to ensure grant recipients maximise the impact of the financial support
- The fund will be delivered by Firstport, Social Investment Scotland and the Corra Foundation
- It will provide grants between £5,000-£100,000
- There is a further £5m available in fully flexible, 0% interest loans starting at £50,000
To be eligible, interested organisations must be:
- A charity, social enterprise or voluntary organisation based in Scotland and/or primarily delivering services/activities in Scottish communities
- Delivering those products or services prior to March 2020;
- Needing to stabilise cashflows directly as a result of the impact of COVID-19, as opposed to pre-existing financial difficulties
To find out if your organisation could be successful in gaining support from this fund please use the eligibility checker. This will filter you through to the correct route for your organisation to apply. Interested applicants are also encouraged to read the fund’s guidance notes and FAQs prior to starting an application.