A north B&B owner has warned microbusinesses are “falling through the cracks” because of obstacles preventing them accessing emergency funding.
The Scottish Government has been offering a hardship fund for the creative, tourism and hospitality sectors as part of £2.3 billion of measures to help companies struggling financially due to the pandemic.
But this pot is only paying out to those with a business bank account – preventing others who have never required one from accessing the cash.
Araminta Dallmeyer has run the Craigiewood B&B on the Black Isle for the last 22 years, and uses her personal bank account for everything.
“My accountant has never seen the need for a business account, and neither has HMRC,” she said.
“I could have supplied them with my accounts or they could have gone to HMRC but I have had an email saying I have been unsuccessful.
“Self-catering firms have access to larger grants and don’t have the same stipulation in place, and we can provide evidence by other means.”
Summer is usually the busiest time of year for Mrs Dallmeyer, and she relies on putting aside some of these earnings to help her through the winter off-season.
She added: “I’m really grateful for everything the Scottish Government is doing, but I feel like B&B owners have fallen through the cracks.
“It’s been suggested I take out a loan but I don’t want to get into debt.
“I need a bit of fat as I have to get through the whole winter, and I imagine there will be many others in this position.
“It would be really good if they could give us something just to help us through this.”
The Scottish Government has been pressed to change the system and make it accessible to more business owners.
Finance Secretary Kate Forbes said she is listening to the concerns of entrepreneurs and is continuously monitoring how the schemes can be changed to better support people.
But she also described the requirement to have a business bank account as “proportionate,” adding: “This will help us to manage the risk of fraud, ensuring that more of these funds go to those that really need them.”
Highlands and Islands MSP Edward Mountain said: “A tweak is not helpful enough, small B&Bs need a real solution so they can access financial support.
“If the finance secretary understood small businesses she would realise how the stipulation that B&Bs must have business bank accounts is a complete farce.
“It is time that the cabinet secretary accepted her error and helped all small businesses excluded from this hardship fund because of an unjustifiable requirement.”
