'Sigh of relief' as small B&Bs are now covered by support scheme
Register for free to read more of the latest local news. It's easy and will only take a moment.
A Highland business leader has said many bed-and-breakfast owners will be breathing "a huge sigh of relief" following a rethink by the Scottish Government on its Business Support Fund.
Small B&Bs that were ineligible for other support due to not having a business bank account will be able to apply for a share of £3 million of funding which has been repurposed from the Newly Self-Employed Hardship Fund.
David Richardson, Highlands and Islands development manager with the Federation of Small Businesses (FSB), welcomed the move.
“I have been approached by a range of long-established and well known B&B operators during this crisis, all very concerned that they were missing out on Scottish Government support because they did not have business bank accounts," Mr Richardson said. "There is absolutely no reason why they should, and it seemed very unfair that they were being refused funding on a technicality.
“FSB Scotland is campaigning hard to ensure that cracks in the support mechanism for smaller business are filled in, and we are sure that right across the Highlands many, many B&B operators will be drawing a huge sigh of relief at this news.”
The Business Support Fund, announced by Scotland's economy secretary Fiona Hyslop at the end of April, has to date helped more than 2500 businesses and 4160 self-employed people.
Now the scheme, which started with £100 million of grant support for individuals and companies affected by Covid-19 and has since been topped up to £185 million, is being expanded. The funding for small B&Bs will be administered by local authorities and applications are expected to open on June 15.
Ms Hyslop said: “On April 30 we launched a £100 million package across three business support funds offering targeted support to the creative, tourism and hospitality sector, SMEs [small and medium-sized enterprises] which are vital to their local economies, and the newly self-employed.
“One month on and we have awarded more than £104 million of grants supporting over 2500 businesses and 4160 self-employed people.
“We have topped up these funding streams by a further £85 million given the volume of applications received, and these additional funds will enable us to reach more businesses in need.
“I announced [on Tuesday] that £3 million of the Newly Self-Employed Hardship Fund allocation will be repurposed to support B&Bs that were ineligible for other support due to not having a business bank account. These businesses are an important part of Scotland’s tourism sector, particularly in rural areas, yet were not eligible for support from the hardship fund.
"I hope this change will help ensure they are ready to welcome visitors once again as soon as circumstances allow.
“This support is not available to equivalent businesses in the rest of the UK and is another example of how the Scottish Government is reacting to meet the needs of businesses during the coronavirus pandemic.”
Highlands and Islands Conservative MSP Edward Mountain was pleased with the "U-turn" on funding criteria. It came after "sustained pressure" from the Help Our B&Bs campaign which he had launched.
He felt that the situation could have been prevented at the outset if the finance secretary Kate Forbes "had shown more business sense".
“At long last there is some business sense from the Scottish Government," Mr Mountain said. "I am delighted that this U-turn will mean hundreds of B&Bs will now receive the lifeline support they so desperately need.
"Businesses that operate without business bank accounts should never have been ineligible for funding in the first place. If the finance secretary had been more aware of the reality of how small businesses operate then this fiasco could have been prevented from the beginning.
"B&Bs have been made to wait too long for funding and I trust the Scottish Government will now make the application process as smooth as possible so funding can be delivered quickly.”
Drew Hendry, the SNP MP for Inverness, Nairn, Badenoch and Strathspey, said: “I am delighted with that these small and vital businesses will now be able to access this new fund. This support will go a long way to help many of our local B&B proprietors, who through no fault of their own had thus far missed out on additional financial support.
"Over these past weeks, I have been highlighting the ongoing plight of these small business owners to colleagues in the Scottish Government, after receiving many emails from local B&B owners and other micro-businesses about the difficulties they have been experiencing.
"It was clear everyone involved was keen to find a solution to support these businesses, and I am thrilled the cabinet secretary has found a way to ensure these vital micro-businesses are given a lifeline in these difficult times.
“This fund will not replace the money these businesses have lost out on but I know it will help greatly and is a welcome step forward for these business owners. I know everyone will be working round the clock at Highland Council to ensure this money is in the pockets of B&B proprietors and other business owners as soon as possible.”
