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Bed & Breakfast Hardship Fund FAQ

Who can apply?

B&B/small serviced accommodation providers who have not been able to access support through other schemes.  That is, this scheme is explicitly aimed at providing support to the business types mentioned above operating with only a personal or joint personal bank account. In addition applications can now be considered from those businesses operating with a business bank account.  

What if I operate non-serviced accommodation (e.g. Self-catering, caravan)?

Unfortunately, these types of business are not eligible for this scheme. It is only open to operators of small serviced accommodation who can provide evidence of membership, accreditation, registration or listing with a recognised hospitality or tourism agency, representative body or marketing organisation.  This could include VisitScotland, Scottish Tourism Alliance, Scottish B&B Association or a local tourism body.

For the purposes of this fund, small serviced accommodation is defined as “B&Bs and other establishments offering bed and breakfast services (e.g. Guest House, Farmhouse, Inn, Restaurant with Rooms)”.

I operate a business bank account but my application to the Creative, Tourism and Hospitality Enterprises Hardship Fund was declined or I wasn’t aware that fund existed until after it closed. Can I apply?

Yes.  This scheme is NOW open to businesses operating with a business bank account, however, you will only be eligible if you have not received support from other schemes (exclusing the Coronavirus Job Retention Scheme and SEISS).

Where do I apply?

You can apply online at the Business Gateway Fife website.

When will I hear back from you?

We aim to process your application within 10 working days of receiving all the information required to make a decision, including the valid supporting evidence. The online application system will provide you with text updates at each stage of the process.

How will I know if my application has been successful?

You will receive at text to confirm when your application has been approved and also once the payment has been processed. The grant should clear into your bank account within 2 working days of payment.

What if I have other paid employment or sources of income in addition to operating a B&B or small serviced accommodation business?

Over 35% of your individual income must come from the affected business.

I started the business in the 2019/20 tax year, can I still apply?

No, it is a requirement of the fund that you filed a tax return in 2018/19.

Is there an upper limit on how much I earned through the B&B/serviced accommodation business in 2019/20?

Your trading profits in financial year 2019/20 must be below £50,000.

I’m thinking of winding up my business. Can I still apply?

No, you must intend to continue trading through the 2020/21 tax year.

Do I need to declare this payment to any other Government department?

Yes, you may be required to declare receipt of this hardship payment for tax purposes or if applying for Universal Credit and other forms of support in the future.

I can do some work related to running my business, am I allowed to continue with that?

Yes, if you receive the hardship payment you can continue to work on your business or take on other employment including voluntary work.

I’m eligible for other COVID-19 related business support, can I still apply for this hardship payment?

No, you should exhaust all other possible sources of income before applying to this scheme.

I get working age benefit payments (Statutory Sick Pay, Employment and Support Allowance, Job Seekers’ Allowance, Income Support) can I still apply?


What if I am in receipt of Universal Credit?

If you are in receipt of Universal Credit or have received an advance from Universal Credit you are not eligible. If you have applied for Universal Credit but are not yet in receipt you will be eligible if you meet all other criteria.

What evidence do I need to support my application?

Before starting your online application, you should gather the following evidence as images or digital copies that must be uploaded during the application process:

  • MANDATORY: Photographic proof of identity - valid passport or driving licence (including provisional driving licence).
  • MANDATORY: Proof of business address - a recent council tax bill, utility bill
  • MANDATORY: business membership or affiliation
    • Membership, accreditation, registration or listing with a recognised hospitality or tourism agency, representative body or marketing organisation.  This could include VisitScotland, Scottish Tourism Alliance, Scottish B&B Association or a local tourism body (for example, Visit Wester Ross)
    • Use of digital or online marketing platform, such as AirBnB, or community website, as primary or only source of independent listing.  
    • Electronic or photographic evidence of membership or listing
    • Proof of registration, affiliation, membership or online listing should be prior to March 2020
  • MANDATORY: Bank statements (personal, joint personal or business account) covering 3 months between April 2019 and March 2020 showing income and outgoings from bed and breakfast trading activity.
    • Acknowledging the seasonal nature of most serviced accommodation, applicants should select the 3 months from between April 2019 and March 2020 that provide the most robust evidence of trading - most likely this will be from their peak season.
  • MANDATORY: Cash Flow Personal Statement
    • A personal statement of financial hardship that includes a forward look covering the period end March 2020 to end September 2020 (6 months).  This statement should include a projected loss of sales/revenue from business activity over the coming summer season and self-declaration this amounts to up to 35% of individual income. 
  • MANDATORY: Financial information including turnover figure from previous year
    • Trading accounts, including turnover, from 2018-19, plus one of the following:
    • VAT Registration Number. This should be a letter or electronic communication.


  • Registration Number - provided by Companies House (CRN), Charities Commission, Mutuals, Public Register and other statutory and regulatory bodies that you must file accounts and annual membership details with.


  • Unique Tax Reference Number - If you do not have a Company Registration Number or a VAT registration number as detailed above, you should provide your HMRC Corporation Tax Unique Taxpayer Reference or HMRC Self-Assessment Unique Taxpayer Reference, as appropriate for your entity. You will be asked to scan and upload a copy of this document.
  • MANDATORY: Any one of the following:
    • A supplier or reseller trade account (active).


  • Valid business insurance in the trading name of the business or name of the applicant


  • Marketing materials for your business, eg business website, active social media. Web links, social media account name (LinkedIn, Facebook, etc…)


  • Other evidence of business activity to support your claim. This could include correspondence with a supplier or customer or testimonials.


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