Fund to help firms which missed out
FIRMS that have “fallen through the cracks” in government support during the Covid-19 pandemic can apply to Glasgow’s new business hardship fund.
City councillors have agreed to use £4.4 million of discretionary funding from the Scottish Government on the new scheme.
It has been designed to pay out to companies who have not received any government cash since restrictions were introduced in October last year. The scheme is set to go live on February 5 and will be open for two weeks.
There will be three levels of payments: £9000 for firms employing between 25 and 50 staff, £6000 for those with between 10 and 24 staff and £3000 for companies with nine workers or less.
Council leader Susan Aitken said the fund would “support businesses who have fallen through the cracks up to this point”.
She added: “While this is extremely welcome, the scale of the impact of the pandemic on businesses in Glasgow means that this is quite a bit less than what we are currently paying to businesses under the strategic fund.”
Later yesterday, Scottish Government finance secretary Kate Forbes announced the discretionary fund for councils, originally £30m, would be doubled to £60m.
Throughout the pandemic, the city council has distributed funds on behalf of the Scottish Government, with more than £170m handed over to businesses.
A strategic business fund went live in November last year and over £8m had been paid out by the end of December.
Businesses which choose to close or operate in a restricted way, but are not required to by law, have been unable to receive money from that fund. Officers have rejected over 2850 applications.
Tory councillor Euan Blockley said his party welcomed the support package but questioned the “slow pace” of that money “actually hitting the bank accounts of those that desperately need it”.
Ms Aitken added: “I believe it was absolutely right that time was taken to ensure we actually created a scheme that responded to issues facing businesses in Glasgow who are not eligible for existing schemes.”
The new grants will cover businesses in premises and on the non-domestic rates list as the eligible ratepayer, tenants and occupiers of premises operating a business who can provide a valid lease and self-employed and sole traders who do not qualify for any other schemes, who can demonstrate financial detriment in the last 12 months through audited accounts.
Applications from third sector organisations and social enterprises, who employ staff, will be considered.
Firms which have received support through other programmes will not be eligible for this fund.
That includes: the taxi and private hire driver support fund, newly self-employed hardship fund and the bed and breakfast/self-catering support fund.
Guidance will be supplied alongside the online application form on the council’s website.
ACITY centre alliance group that represents almost 70 local businesses has revealed new government funding during Covid19 will not be enough to prevent shop closures.
The Glasgow City Centre Small Business Alliance has warned firms are still at risk of falling under despite a £4.5 million fund being announced by the local authority.
Amjid Bashir – who owns Newsbox on Queen Street and who is spearheading the campaign – has warned the grants “fall short” of what is needed to save shops from closure as cash will only be enough to cover one month’s rent.
A total of £9000 will be available for those employing between 25 and 50 staff, £6000 for businesses employing between 10 and 24 and £3000 for firms employing nine or fewer than nine people.
Mr Bashir said: “Due to the fact that most newsagents and small businesses in the city centre will only employ six workers or less, we feel that £3000 isn’t really enough to cover the costs lost as a result of the changing restrictions and lockdowns.
“It falls very short of what nonessential businesses have been given to survive the pandemic. I’ve been closed since December and it’s looking like we’ll be closed for another three months.
“It falls very, very short of how much we’ve lost. Although the government hasn’t forced us to close, we’ve had no other choice due to a loss of footfall and residency in the city centre.
“Although we welcome this fund and we’re very much grateful for it, the council still needs to assess essential businesses’ needs – particularly due to where we are located.”
Mr Bashir stressed that while the cash will be substantial for businesses in other areas of Glasgow, units in the city centre still face struggles due to differences in rent prices.
He added: “The fund should have come about much sooner. We’re in a battle against time. I was hoping that the government would have given the same protection to us that non-essential businesses had from the Covid-19 fund.”
A Glasgow City Council spokesman said: “This funding is aimed at supporting those businesses affected by the pandemic who have not been eligible for funding from previous government support schemes.
“This is a finite resource with the £4.467m for Glasgow coming from the £30m national fund, so while we appreciate the challenges that the business community – like all of us – face just now, we will use this discretionary funding to support those businesses who need it most.”
The Scottish Government said more than a third of overall Covid-19 funding – £3 billion – had been allocated to supporting businesses.
A spokesperson said: “We understand that all businesses face significant difficulties during the pandemic and we are committed to providing continued assistance, within our limited resources.
“Our Local Authority Discretionary Fund will be doubled to £60 million in this financial year to allow councils to respond to local needs.”
It falls very, very short of how much we’ve lost