Shetland will receive a £1.36m share of funding for Scottish coastal communities.
The revenue generated by the Scottish Crown Estate’s marine assets is allocated across 26 local authorities with coastlines.
Funding is based on authorities’ share of the adjacent sea area.
Shetland’s share is equivalent to 14 per cent of the £9.7m, making it the third-highest beneficiary after Eilean Siar, Highland and Argyll and Bute.
The Scottish government said the money, which is expected to be paid by the end of July, would provide “vital support for responding to the impact of coronavirus”.
The scope of the funding has been broadened in response to Covid-19, with authorities now able to directly support businesses, including third sector organisations, affected by the pandemic.
Shetland is being allocated £350,000 more than it did in 2019.
Land reform secretary Roseanna Cunningham said: “Covid-19 has had a devastating impact on communities across the country and particularly those people and businesses living and working in our coastal areas, which are often reliant on tourism.
“That is why we have widened the remit of these funds to include direct support, where necessary, to coastal businesses and third sector organisations.
“This year’s funding is a significant increase on the revenue which was allocated from the Scottish Crown Estate to local authority areas in the first year of this funding coming under devolved management.
“It will greatly help our coastal areas as we embark on a challenging period of recovery from the pandemic for all parts of our economy.”