Previous applicants please note: If you have successfully applied to one of the previous rounds of the Islands Business Resilience Fund, you do not need to reapply to the Islands Resilience Fund. A member of HIE staff will contact you directly.
A full list of previous awards can be viewed on our quarterly approvals:
What is it?
Financial support for island businesses affected by ferry disruption will be made available through the first phase of the £10 million Islands Resilience Fund. This phase of the Islands Resilience Fund is being delivered by Highlands and Islands Enterprise on behalf of Scottish Government. This will provide a further £3 million in 2026-27 to help mitigate the disproportionate impact faced by people and businesses living and operating in Scotland's islands. It builds on the £4.4 million Islands Business Resilience Fund delivered in 2025-26.
About the fund
The purpose of the fund is to support the continued resilience of SME organisations (businesses, social enterprises, and community organisations) operating in the visitor economy, perishable goods and haulage sector across targeted islands which have had prolonged disruption to their ferry services from mainland Scotland.
Following consultation events and evaluation of the previous fund, some criteria have been adapted and refined to ensure funding is reaching those most impacted by disruption.
The award is a non-repayable revenue grant and will be based on turnover and average annual employee numbers.
Who's eligible?
SME organisations (businesses, social enterprises and community organisations) operating in the visitor economy, perishable goods and/or haulage sectors across one or more of the following islands:
Arran
Barra
Benbecula
Berneray
Coll
Colonsay
Eriskay
Gometra
Grimsay
Harris
Iona
Islay
Jura
Mull
North Uist
Scalpay
Small Isles (Canna, and by extension Sanday, Muck, Eigg, Rum)
South Uist
Tiree
Ulva
Vatersay
All applicants must have a trading address in one or more of these islands and must be primarily operating in one of the following sectors:
Retail outlets (shops, stalls, markets) affected by reduced footfall.
Cafes, restaurants and other eateries.
Hotels, B&Bs and other accommodation providers e.g. youth hostels, campsites, pods, etc.
Visitor attractions including museums, art galleries, indoor/outdoor leisure facilities and events, etc.
Transport operators in the visitor economy (taxi, bus, cycle hire).
Tour operators and guides, including those offering bespoke experiences such as retreats, whale watching, fishing, etc.
Catching, farming (i.e. fish and shellfish), processing and manufacture of perishable* food and drink items e.g. fresh seafood.
Haulage of perishable, non-perishable goods and livestock.
*Perishable food and drink items are products with a limited safe or commercial shelf life which may deteriorate, spoil, lose value or become unsafe if delayed in transport or not kept under appropriate storage conditions (usually 0-5 degrees centigrade). Key examples include meat, dairy and fish.
The organisation must:
Have started trading on an eligible island on or before 1 April 2025 – applicants will be required to provide 12-month trading accounts.
Have an annual turnover of at least £15,000 in your last accounting period i.e. your approved annual accounts or, for self-employed, your income and expenditure as declared to HMRC in January 2026. For social enterprises and community organisations, by turnover we mean income other than public sector grants.
Generate at least 50% of their turnover from one or more eligible sectors on one or more eligible islands. Self-employed/sole trader applicants including those with multiple income streams must generate at least 50% of their total income from trading in one or more eligible sectors on one or more eligible islands.
Be a micro, small or medium enterprise as determined by average annual employee numbers i.e. between 0 and 249 employees. NB – voluntary run organisations with no employees can also apply as long as they meet all other criteria.
Have more than 50% of your staff based on one or more eligible islands.
Intend to continue trading in the eligible sectors for the next 12 months on an eligible island. Note – organisations that cease trading within 12 months of being awarded a grant may have to repay the grant.
Who is not eligible?
The following types of organisations are not eligible to apply:
public sector and arms-length government organisations
political organisations
religious/membership organisations (unless proof can be given that their trading activities are open to all)
organisations that transport perishable goods primarily by air rather than ferry
How much can I apply for?
Awards will be based on turnover and size of organisations (average annual number of employees). We expect awards to new applicants to range between approximately £3,000 to £35,000.
Application process
Previous applicants note: If you have previously had an award from the Islands Business Resilience Fund, you will be contacted directly by a member of HIE staff to confirm continuing eligibility. You do not need to apply again.
For new applicants, there is a 2-stage application process. If you are applying for the first time, please complete the enquiry form available above. Once your enquiry has been submitted and all eligibility criteria verified, you will be contacted directly by HIE and invited to complete a full application via our online portal.
For the full application, you will need to provide supporting documentation, including:
Evidence of turnover – this could be your most recent annual accounts. For self-employed/sole traders, a copy of your most recent Self Assessment Return submitted to HMRC.
Bank statement from the last 3 months – clearly showing account name, account number and bank sorting code. This should be the account any potential award is paid into.
Company registration number or OSCR registered number, where applicable.
FCA registration number for registered society, co-operative or community benefit organisation.
VAT registration number.
Average annual employee numbers, calculated from permanent and seasonal. A full-time equivalent (FTE) is 30 hours minimum per week but could be 35 to 40 hours according to your organisation’s normal working hours. For part-time staff year-round add 0.5 of a post and the same for full-time seasonal. For part-time seasonal staff count 0.25.
Details of any previous Minimum Financial Assistance (MFA).
Application timeline
Enquiries from new applicants can be submitted from 17 August 2026 at 12 noon until 28 September 2026 at 12 noon.
Previous successful applicants will be contact directly by HIE by 31 August 2026.
Applications will be assessed by mid October 2026. We expect decisions to be made at the earliest opportunity after that date. We expect to make payments by the end of December 2026.
Fair work
We are gathering information regarding fair work and equality which will be used for reporting purposes only, it will not impact your application. For more information on fair work see The Fair Work Convention.
The small print - this is important
All HIE grant assistance is discretionary.
Grant awards are subject to due diligence and we reserve the right to request further information in support of our assessment or as part of monitoring and evaluation.
Making an application to the scheme does not guarantee that your application will be successful.
The application must be submitted by someone with the relevant authority within the organisation.
We are unable to consider a complaint purely relating to dissatisfaction as to the outcome of a funding decision. There is NO appeals process, however, if you have identified a specific process failure relating to your application then you may wish to make a formal complaint. See our complaints process for more information.
Your application may be subject to audit checks which may require you to provide further information.
In line with HIE’s Terms and Conditions and to ensure transparency, all awards will be published on the HIE website.
Need to speak to us?
Before you get in touch, please have a look at our frequently asked questions.
If you would like to talk to someone about your enquiry, please email islandsfund@hient.co.uk and we will get back to you.
Apply now
Please complete the enquiry form below as the first stage of applying to the Islands Resilience Fund.
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