Local Business Discretionary Fund - Phase 2
The Local Business Discretionary Fund (LBDF) aims to provide grant support to local businesses experiencing immediate financial challenges because of the COVID-19 restrictions/regulations and that have been unable to access the Strategic Framework Business Fund or other Scottish Government COVID-19 business grant schemes. The LBDF aims to assist local businesses that have been without COVID-19 financial support since October 2020. Businesses that received funding through any other schemes since October, including the previous phase of LBDF and the Strategic Framework Business Fund, are not eligible.
The budget is limited and applications will be considered on a first-come, first-served basis.
Applications must be complete and all supporting documentation submitted before they will be considered.
The discretionary fund will provide a one-off payment of £3,000 per business or per business premises.
The business must fall into one of the following three categories:
- a supplier of goods or services to businesses that have been closed or restricted;
- face hardship as an indirect consequence of the current restrictions but have not been eligible to receive financial support through the Strategic Framework Business Fund or recent or proposed Scottish Government funds;
- do not have business premises and are therefore ineligible for grants attached to the rates system.
Other eligibility criteria include:
- must be based in the Outer Hebrides Western Isles and be a small or micro enterprise employing fewer than 50 staff;
- must be ineligible for any Scottish Government support scheme introduced since October 2020, other than SEISS;
- must not be connected to a ‘tax haven’, as set out in the Coronavirus (Scotland) (No 2) Act 2020;
- businesses in administration, insolvent - or where a striking-off notice has been made - will not be eligible for financial support through this fund;
- income in the period October 2020 to March 2021 was at least 30% lower than the equivalent period in 2019;
- must have been trading prior to restrictions changing from Tier 1 to Tier 3 in the Western Isles (26/12/2020);
- must provide details and evidence of a bank account that clearly demonstrates business activity (i.e. in the form of an uploaded bank statement) to which grant payments will be made;
- a business that has not breached wider COVID regulations/requirements leading to enforcement action;
- open to Limited Companies (including Scottish Charitable Incorporated Organisations? and social enterprises), Sole Traders, Trusts, Partnerships, Community Interest Companies, Freelancers or the Self-employed;
- non premises-based businesses will be required to provide evidence to demonstrate proof-of-identity (e.g. passport, driving licence etc.) and address (e.g. Council Tax bill, utility bill etc.);
- businesses will be required to provide evidence of active trading in the period before restrictions came into place, i.e. on 9 October 2020; and
- the self-employed will be required to confirm that self-employment makes up at least 50% of their income from employment.
- This grant will be operated on a first-come, first-served basis;
- Appeals received relating to unsuccessful applications will be reviewed by the Head of Economic Development & Planning, whose decision will be final.
Covid-19 Scottish Business Support Summary
Support for Businesses
The UK and Scottish Governments have announced a package of support to assist businesses. You can find out more at COVID-19 UK Govt Support for Business (Opens in a new window or downloads a file) and Find Business Support Scotland (Opens in a new window or downloads a file). A summary of this support is outlined in the document linked below.
Business Gateway is being responsive and reactive to the needs and challenges Scottish businesses face due to the Coronavirus (COVID-19). The following links provide a list of free business resources and links to funding information that may be useful to you at this difficult time:
Key Website Pages Specific to Covid-19 Business Support
- UK Government (Opens in a new window or downloads a file)
- Scottish Government (Opens in a new window or downloads a file)
- Business Gateway National (Opens in a new window or downloads a file)
- Business Gateway Local Offices (Opens in a new window or downloads a file)
- Federation of Small Businesses (Opens in a new window or downloads a file)
- Scottish Chambers of Commerce (Opens in a new window or downloads a file)
- ACAS - The Advisory, Conciliation and Arbitration Service (Opens in a new window or downloads a file)