Bed and Breakfast providers hardship relief fund

The purpose of this fund is to provide hardship relief to B&B/small serviced accommodation providers who have not accessed support through other schemes. These businesses may operate with a personal or joint personal bank account. In addition, applications can now be considered from those businesses operating with a business bank account.

Successful applicants will receive a one-off payment of £3,000.

Local councils are managing this Scottish Government fund.

Accommodation eligible for funding

  • The fund applies to the broad VisitScotland designation of ‘Small Serviced Accommodation’, which includes B&Bs and other establishments offering bed and breakfast services - Guest House, Farmhouse, Inn, Restaurant with Rooms.
  • The business types mentioned above can be operating with a personal or joint personal bank account. Applications can now also be accepted from businesses using a business bank account if not in receipt of other Covid-19 business grant support.
  • This fund excludes other types of non-serviced accommodation providers such as self-catering, caravan accommodation, Air BnB and similar.
  • You must apply in the Local Authority area where your business is located.


To be considered, you must meet these criteria:

  • Have membership, accreditation, registration or listing with a recognised hospitality or tourism agency, representative body or marketing organisation (national or local) prior to March 2020. This can include a listing on digital or online marketing platforms, such as, AirBnB, or a community website.  However, this is restricted to only those businesses marketing B&B type provision not holiday, room or property letting.
  • At least 35% of individual income is from affected business
  • Trading profits are below £50,000 in financial year 2019-20
  • Can provide evidence of active trading up to March 2020 and intend to continue trading in the tax year 2020-21
  • Have been in business for at least a year and filed a HMRC business tax return for 2018/2019
  • Have lost or anticipate losing business this year due to coronavirus and are experiencing or anticipating financial hardship as a result; demonstrated via a simple personal cash-flow statement (300 words or less) to the period end September 2020
  • Applicants cannot be in receipt of other COVID-19 related business grant support. (e.g. not in receipt of Non-Domestic Rates Covid Grants, Small Business Grants, Creative, Tourism and Hospitality Hardship Grants).
  • Applicants are permitted to make use of Coronavirus Job Retention Scheme and can be in receipt of SEISS.
  • Do not receive working age benefit payments (Universal Credit, Statutory Sick Pay, Employment and Support Allowance, Job Seekers’ Allowance, Income Support) or have applied for but not yet started receiving Universal Credit or an advanced payment of Universal Credit
  • Have taken steps to limit costs and expenditure (for example through schemes such as VAT deferral and seeking a mortgage payment holiday)
  • Do not have access to sufficient savings or other sources of income to meet basic needs
  • The business operates within the local authority to whom you are submitting this application

How to apply

Download and complete the application form below, then email it with your supporting documents to [email protected].

Please follow this advice to reduce the risks of sending personal information by email:

  • Do not use a shared device to send your email.
  • Do not use an unsecured or public WiFi network to send your email.
  • Before sending, double check the email address you are sending to is [email protected].
  • After sending, delete your personal documents from your sent email.

Application form

Please read the eligibility criteria and supporting evidence requirements carefully. Send accurate documentation so we can process your application as quickly as possible.

Supporting documents

You must attach images or digital copies of the following in support of your application:

  • Proof of identity, ideally photographic (for example a valid passport or driving licence) – mandatory
  • Proof of business address (for example a recent council tax bill or utility bill) – mandatory
  • Evidence of membership, accreditation, registration or listing with a recognised hospitality or tourism agency, representative body or marketing organisation; national or local (for example, e-copy of quality assurance certification, online listing with local tourism board). At the discretion of the Local Authority, this can include B&B listings on online and digital marketing platforms and community websites – mandatory

Also include three forms of evidence of active trading up to March 2020:

  • HMRC business tax return/accounts for 2018/2019 – mandatory
  • 3 months of personal, joint personal bank or business bank statements evidencing business revenue or expenditure on those statements during financial year 2019/2020 - mandatory
  • This should be accompanied with one of the following: 
    • HMRC unique tax reference 
    • Or VAT registration number 
    • Or Business Registration Number (provided by Companies House, Charities Commission, Mutuals, Public Register and other statutory and regulatory bodies that you must file accounts and annual membership details with)

And finally any one of the following - mandatory:

  • Evidence of trading, for example a supplier or trade account (active). Or other evidence of recent business activity to support your claim (e.g. correspondence with customers or suppliers)
  • Valid business insurance
  • Current marketing materials for your business, e.g. business website, active social media – provide web links

Personal cash-flow statement

  • On the form, you are asked to provide a simple, personal cash-flow statement to the period end September 2020 demonstrating hardship from loss of business income (300 words or less). This is also mandatory.

What happens next

  • You will receive an automated email acknowledging receipt of your application.
  • The application will be processed and payment should be received within 10 working days.
  • If you receive the grant, you can continue to work or take on other employment, including voluntary work.
  • If you need additional support, please contact our Business Gateway team by email at: [email protected].

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