Businesses affected by ferry disruption in Coll, Tiree, the Small Isles, Mull, Iona, Ulva, Barra, Vatersay, Islay and Jura can now access financial support.
The £4.4 million Islands Business Resilience Fund (IBRF) is expanding to support more businesses experiencing economic impacts linked to travel issues.
Originally open to businesses on South Uist, Colonsay, North Uist, Eriskay, Benbecula, Berneray, Grimsay and Arran, the fund supports sectors most impacted, specifically the visitor economy and the manufacture or movement of perishable goods, like seafood. Over £1 million has already been paid out.
Following feedback from island communities and updated analysis of disruption data, the Fund is now also available to more island businesses.
Highlands and Islands Enterprise (HIE) will continue to manage the Fund on behalf of the Scottish Government.
Applications will be accepted from Monday 8 December and close on 12 January 2026 with decisions and payments expected by before the end of the March 2026.
Awards will be based on demand and the scale and size of organisations that apply.
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."
Rachel Hunter, HIE Director of Enterprise and Community Support 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."