The Scottish Seafood Business Resilience Fund provides a combination of grants and loans to businesses suffering severe hardship following the shutdown of international markets and the food service industry across the UK.
Rural Economy Secretary Fergus Ewing said: “Parts of the seafood sector have been decimated by the collapse of the export and hospitality markets, and are now struggling to survive.
“Our seafood processors are the lifeblood of many rural and coastal communities, supporting thousands of local jobs and producing some of the finest seafood in the world.
‘Cashflow is critical’
“The industry has been very clear that cashflow is the critical issue facing businesses and this new fund seeks to inject capital into businesses to help them meet their ongoing costs, keep the business solvent and keep people on the payroll.
“Our approach is rightly focused on those businesses who may need our support the most and we would encourage others that can step in to help, to do so. I am also exploring how supermarkets and other retailers might help ensure more of Scotland’s seafood reaches Scottish consumers to help create alternative markets.
“I continue to have regular discussions with the industry during this time and I pay tribute to the leadership shown by the Scottish Seafood Association and Seafood Scotland. We will now move to get these funds out of the door as quickly as possible to assist a sector which has been a real success story for the Scottish economy.”
What the sector wanted
Donna Fordyce, interim head of marketing group Seafood Scotland said: “Following the Scottish Government’s recent announcement of financial aid for the fishing sector, this package of support for the wider seafood industry is critical to its survival, and very much welcome.
“We have spent the last two weeks speaking to seafood businesses all over Scotland, and these measures are just what they have been asking for.
“The sector is one of the most fragile areas of Scotland’s economy, yet delivers so much in terms of employment and export effort.
‘Industry is on its knees’
“With most export routes almost entirely closed off and around 80% of shellfish and seafood normally destined for international markets, the industry is currently on its knees but this package will help many seafood businesses live beyond the impact of Covid-19.”
Businesses will be required to apply for support and meet the relevant criteria, further details of which will be published in the coming days.
A mix of grants, up to the revised state aid level of €120,000 (£105,400), and loans will be available.