THE Scottish Government has announced a £10 million package of support for the seafood industry, parts of which have been "decimated" by the coronavirus outbreak.

Businesses that meet certain criteria – which will be announced in the near future – can apply for a mix of loans and grants to protect them during a downturn in business.

Grants will be capped at the equivalent of €120,000 – around £105,000 – for firms, with the rest made up in loans.

Rural Economy Secretary Fergus Ewing warned sections of the industry have been "decimated" by the pandemic.

He said: "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.

"The industry has been very clear that cash flow 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."

READ MORE: Scottish shellfish industry faces a Covid-19 'catastrophe'

Ewing said he is in talks with supermarkets to boost the amount of seafood being sold.

He added: "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."

The support is the latest measure by the Scottish Government to try to bolster businesses against the outbreak, including a series of grants for small and rural businesses, as well as those in the retail, hospitality and leisure.

Interim head of Seafood Scotland Donna Fordyce welcomed the support.

She said: "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.

"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."

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