Covid business support grants are changing

Grants provided by Orkney Islands Council aimed at supporting local businesses affected by the pandemic are changing soon.

The grants affected are:

• Business Hardship Support Grant
• Protective Equipment Grant

The Business Hardship Support Grant aims to assist local businesses experiencing pressing financial difficulties from unavoidable costs related to the pandemic.

The scheme has been reviewed in response to business needs. ‘Phase Two’ of the scheme will come into effect on December 9 with changes which are aimed at widening the scheme, providing more flexibility, enabling the grants to be directed to businesses in most need, and streamlining the application and assessment process.

From December 9 a key change from Phase 1 of the scheme will be that applications are open to businesses who previously received £10,000 or £25,000 from the Scottish Government Coronavirus Business Support Grants.

Businesses who have already applied for or received a BHSG can reapply for a Phase 2 grant and based on financial need. As before the grant does not replace lost income but is designed to support unavoidable costs that risk permanently closing the business.

Based on the level of short term need shown in Phase 1 applications, from December 9, the grant amounts available will be reduced. However businesses may now apply more than once if they have less than six months of fixed costs in financial reserves remaining.

The new grant levels from 9 December are:

• £2,500 per applicant for businesses employing 1 to 5 full time equivalent (FTE) employees.
• £5,000 per applicant for businesses employing 6 to 10 full time equivalent employees.
• £7,500 per applicant for businesses employing 11 or more full time equivalent employees.

While businesses must meet the FTE levels for the grant they apply for, they can apply for a lower level grant to better match projected hardship need. Businesses who apply will be asked to support their application and demonstrate need by providing a 6-month cashflow forecast. Support for this will be available through Business Gateway.

No closing date has been set for this scheme.

The Protective Equipment Grant will close on December 18. This is earlier than previously advertised due to a slow down in applications and feedback that most businesses will have by now obtained the protective equipment they require.

The Council wishes to remind businesses the Covid19 Recovery Development Grant remains unchanged and open for applications.
The aim of the grant is to support businesses to invest in new developments that increase efficiency, enhance access to new markets and improve competitiveness leading to future and sustainable business growth.

The above schemes are all supported by the £5 million Coronavirus Response Fund created by the Council in April this year in response to the Covid-19 crisis. The Fund is primarily drawn from the Council’s Strategic Reserve Fund, and supplemented by a mix of Crown Estate funding and a contribution from OIC’s Renewable, Redevelopment and Regeneration Fund.

The Council has delivered grant and loan funding direct to local businesses totalling over £10.4 million, just over £2 million of which is from the £5 million Coronavirus Response Fund. The £2million paid out is direct additional support to Orkney businesses by the Council which is not available in other parts of the country, thereby providing an additional support to Orkney businesses.

Businesses can find more information about COVID-19 related local and Scottish Government grants being delivered by the Council, check if they are eligible and make online applications on the OIC website. Visit the Covid Information for Businesses page and click on ‘Support’ for information on this and other grants.

For other up to date information and support please visit Business Gateway’s dedicated webpage at www.bgateway.com/coronavirus.

Councillor Graham Sinclair is Chair of the Council’s Development and Infrastructure committee: “The changes agreed at today’s Full Council meeting have been introduced based on feedback and experiences of local businesses over the last six months, and will allow the Council to continue to provide additional support to Orkney businesses beyond the support available from national governments.

“They will help us direct the money towards where it is most needed and where it can help businesses stay open, serve customers and keep staff on.

“We’d remind the business community these Council schemes have limited resources, and when thinking about applying to please give consideration for the businesses in Orkney who are experiencing extreme hardship and in dire need of immediate financial help, remembering that many national funding packages have now closed.”