Scottish Pivotal Enterprise Resilience Fund Now Open

The portal to apply for support from the Coronavirus Scottish Pivotal Enterprise Resilience Fund opened on 30 April 2020. This is funding for Scottish SME’s that have the potential to continue trading and supporting employment but that have an immediate cash flow challenge.

Which businesses can apply?

This grant is for Scottish SME’s that can: –

1. demonstrate that they are vulnerable at the moment but can make a strong business case for a viable future and

2. play a critical role in supporting Scotland’s recovery but need some immediate support. It might be to get back up and running or to maintain or diversify your current operations.

How much funding can be claimed?

The fund will provide support to qualifying businesses and give them working capital to assist them to continue trading or to come out of hibernation at the right time. This will take the form of a bespoke, needs based grant. 

The grant is designed to provide working capital to help with cash flow and secure the business’s medium-term future.  It can be claimed in addition to other Coronavirus funding such as the Coronavirus Job Retention Scheme.

What does Pivotal mean?

The guidance notes state that “Pivotal means different things in different regions and this will be taken into account during the assessment.”  Successful applicants will be able to provide evidence of, or demonstrate impact in, one or more of the following areas:

• Supporting Scotland’s productive capacity– through wage levels, employment, exports, Research & Development and innovation

• Local economic importancewhich would include areas such as, employee numbers relative to place, delivery of essential services, wider economic and community value, plus the socio-economic importance of the business in remote and rural areas

• Leverage on wider business communityby demonstrating the impacts of your business on supply chain at a local, regional and national level

• Being a supplier or potential supplier to NHS or other COVID-19 vital services

• Being a supplier to other essential businesses

• Demonstrating a need to rapidly scale up or diversify due to COVID-19

What are the eligibility criteria for businesses?

1. Up to 249 employees and has been trading successfully prior to Covid19
2. Turnover of less than £43.689 million or a balance sheet total of less than £37.572 million
3. Ability to demonstrate the funding will support the business to be viable
4. Not in financial difficulty before 31 December 2019
5. Must have business bank account
6. Is a Fair Work employer or working towards becoming a Fair Work employer

How long will it take to get the funding?

It will take up to 10 working days from application and appraisal to the funds being released for approved applications.

Successful applicants will be notified and then must accept the offer within 3 days.  Then 100% of the grant awarded will be paid over.

What is the application process?

Applications need to be made online: –

https://customerexperience.weareumi.net/supportbiz/Application.aspx

You need to read the detailed guidance notes first: –

https://findbusinesssupport.gov.scot/Coronavirus-funds-guidance-for-applicants

What information do you need to have to hand when applying?

• A bank statement from your business bank account that is less than three months old
• Your Companies House registration number if you are a registered company
• Your VAT registration number if you are registered for VAT
• If you do not have a Company Registration Number or a VAT registration number you will need to provide your Corporation Tax Unique Taxpayer Reference or Self-Assessment Unique Taxpayer Reference, as appropriate for your entity. You will be asked to scan and upload a copy of the relevant HMRC document.
• The number of full-time equivalent (FTE) staff you employ
• A 12-month cash flow (A template will be provided as part of the application process)
• Your latest filed accounts
• Management accounts that cover the period since your last filed accounts and 1 March 2020
• Turnover figure from last year
• Funding received/claimed from Coronavirus Job Retention Scheme, funding from Coronavirus Interruption Loan Scheme, any other COVID 19 grants or other grants

Note that once you start the process, you will have three days to complete your application.  You will therefore need to ensure that you have ALL relevant information required to complete this, including management accounts, within this timescale.

You will also need to be able to:

• Explain in what way the business is pivotal to the local, regional or national economies
• Demonstrate that the business is vital to the local, regional or national economy by providing a brief outline of the wider contribution that your business makes to your local community or region of Scotland. As above, this could include benefits that extend to other businesses, local supply chains, associated employment and wider social and community benefits.
• Detail any benefits associated with increased R&D activity, innovation, export potential, increased productivity, diversity and equality, skills and training, supply chain opportunities and a net zero carbon economy could also be included.
• Explain how the grant will be used and how it will help sustain or expand trading
• Confirm if the business is a Micro, Small or Medium Enterprise

You should be able to establish if your business is potentially eligible for funding by completing the initial part of the application process.

Note that levels of employment and wages going into the local area will be considered when assessing applications and prioritising funding.  This means, for example, that businesses employing less than 10 full-time equivalents in the city centres of Aberdeen, Edinburgh, Glasgow and Dundee are unlikely to be successful unless they can demonstrate a substantial impact on the city, regional or national economies.

Photo by Erik Mclean on Unsplash

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.