Businesses across some of Scotland’s most fragile island economies will now be able to access financial support as the Islands Business Resilience Fund (IBRF) is expanded to cover communities experiencing ongoing disruption to ferry services.
The Scottish Government confirmed that the £4.4 million fund, originally created to support businesses on South Uist, Colonsay, North Uist, Eriskay, Benbecula, Berneray, Grimsay and Arran, will now extend to Coll, Tiree, the Small Isles, Mull, Iona, Ulva, Barra, Vatersay, Islay and Jura.
The expansion follows sustained feedback from island residents and businesses who have faced unpredictable timetables, cancelled sailings and knock on delays that have affected everything from tourism to the movement of perishable goods.
The fund is designed to support sectors most exposed to these challenges, particularly the visitor economy and the seafood supply chain, both of which play vital roles in the economic life of island communities.
More than £1 million has already been paid out since the fund opened, helping businesses navigate the financial strain caused by travel disruption.
Applications for the expanded support open on Monday 8 December and will close on 12 January 2026, with decisions and payments expected before the end of March.
Highlands and Islands Enterprise (HIE) will continue to administer the fund on behalf of the Scottish Government, ensuring that support reaches businesses as quickly as possible.
Islands Secretary Mairi Gougeon said:
“We know that island businesses are feeling the disproportionate impacts from ferry disruption on the network.
“Over £1 million has already been paid out to businesses that have faced challenges, as a result of these issues.
“We have listened carefully to island communities that did not qualify for support when the Fund opened and in response, are expanding to include businesses on Coll, Tiree, the Small Isles, Mull, Iona, Ulva, Barra, Vatersay, Islay and Jura.
“Working with Highlands and Islands Enterprise, we will continue to do everything we can to address the challenges faced by our island communities to allow them to thrive.”
HIE Director of Enterprise and Community Support Rachel Hunter said:
“We’re pleased to be asked to deliver a further funding round of the Islands Business Resilience Fund to support more island businesses and social enterprises.
“The fund will help strengthen resilience of organisations in the visitor economy and perishable goods sectors that have been affected by ferry disruption.
“Our focus will be assessing applications promptly so that funding can be awarded as soon as possible after the closing date.”
The expansion offers a measure of stability at a time when confidence has been shaken in many island communities, with some businesses reporting reduced visitor numbers, rising transport costs and supply chain uncertainty through the year.
With the new round of funding now open, there is hope that the scheme will provide a buffer through the winter months, allowing businesses to plan with greater certainty while ongoing national work continues to stabilise Scotland’s ferry network.
