Support for Soft Play Businesses and Nightclubs Required to Close

The Scottish Government has announced that they will provide support to Soft play businesses and Nightclubs that have been required to close by law since March 2020 via the Coronavirus (COVID-19) Business Contingency Fund. 

How much 

The support will take the form of a one off grant.  Eligible businesses will receive: –

• A £10,000 grant for a property from which they operate with a rateable value of £18,000 or under; or

• a £25,000 grant for a property from which they operate with a rateable value between £18,001 and £51,000; or

• a £50,000 grant for a property from which they operate with a rateable value above £51,001.

Businesses operating from multiple premises will be eligible for a grant for each one, with the grants for second and subsequent locations payable at 75% of the standard rates set out above.

Eligibility

The main qualifying criteria is:

• that the business must have been closed by law since March 2020. Therefore any “play” premises that re-opened for play frame activities at any time will be ineligible and any nightclub that changed license and opened as a pub will be ineligible. All other sectors are ineligible.

In addition:

• the business must have been fit to trade on 1 March 2020 and not insolvent as at 1 October 2020 or have had directors disqualified under Company Directors Disqualification Act 1986

• the business premises must be registered for Non-Domestic rates. Businesses that pay rates via their landlords rather than directly to a Council are eligible to apply (evidence to be provided through copy of lease agreement).

• if the business operates multiple premises it is eligible for a grant for each one, with second and subsequent locations eligible for 75% of the standard rates set out above. You must pursue only one claim for all locations, working with the local authority in which your business is headquartered.

• you must have a business bank account

• you must provide details of all prior support of any kind provided by local government, the Scottish Government or the UK Government, and this must fall below the cap for EU State Aid Rules

• businesses which have breached wider COVID regulations/requirements prior to local restrictions are not eligible to apply

• businesses with connections to tax havens are not eligible

• Limited Companies, Sole traders, Trusts and Partnerships are eligible provided they meet the other criteria

Additional eligibility criteria for soft play businesses: 

• you must have separate ‘pay to play’ charges. This grant is not available to businesses that have a courtesy soft play area for customers i.e. car showroom, restaurant, airport, dentists waiting area, or is free to use as part of a larger entity etc.

• if your ‘pay to play’ Soft Play is within a multiple use unit, and use is not separately defined in the valuation roll, the ‘pay to play’ soft Play’s Rateable Value will be determined on the percentage of floor space it occupies including a pro-rata percentage of any attached café/retail area.

Additional eligibility criteria for nightclubs: 

• where you have received (or will receive) funding of equivalent or greater value from the Culture Organisations and Venues Fund (COVF) from Creative Scotland you will not be eligible for funding except for insofar as a top-up payment may be made if the COVF award is less than the award otherwise payable through this Discretionary Fund.

How to apply

You do not need to apply for this funding.  Your local authority will contact the business shortly to begin the process of gathering information in support of your claim.

If you operate multiple locations you must pursue only one claim, working with the local authority in which your business is headquartered.

The Scottish Government has stated that award levels take account of “exceptional circumstances” for these types of business and should not be regarded as setting a precedent for future business support or indeed subsequent phases of the Contingency Fund.

The information in this blog provides only an overview of Scottish Government guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed Scottish Government 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.

Photo by Jeremiah Lawrence on Unsplash