Since the COVID-19 outbreak, business is far from “running as usual”, which is why we are writing this blog with the aim of summarising the raft of measures that have been announced by the government regarding financial support and to ensure you are aware of the latest schemes and extensions put in motion to help your venture.
To begin with, the British Business Bank has launched the details of the Coronavirus Business Interruption Loan Scheme (CBILS) which is open for applications (extended till 31st January 2021) for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.
You are eligible for the scheme if:
– Your business is UK based, with turnover of no more than £45 million per year.
– Have a borrowing proposal which, were it not for the COVID-19 pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable your business to trade out of any short-to-medium term difficulty.
– Smaller businesses from any sector can apply for the full amount of the facility/
The British Business Bank has also announced the list of current accredited lenders & partners as of 27th November 2020, accessible here. Note that not every accredited lender can provide every type of finance listed, so use the filter buttons to find the lender right for you.
Since this article was initially published (i.e. March 2020) the government has announced a range of schemes such as the Future Fund (available till 31st January 2021), Bounce Bank Loan Scheme (BBLS) (available till 31st January 2021). To check the latest updates on the various financial support for businesses during COVID-19 view government page here.
Other highlights from w/c 23rd March 2020 for small businesses:
- Coronavirus Job Retention Scheme: 80% of employees’ wages can be covered up to £2,500 per month that can no longer be paid (ie “furloughed”). The scheme will be administered by HMRC through a special portal.
- Statutory Sick Pay (SSP): SME employers can reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. This refund will cover up to 2 weeks’ SSP per eligible employee.
- Deferral of Tax and VAT Payments: All UK VAT registered businesses can defer VAT payments due between 20th March 2020 and 30th June 2020 until the end of the tax year and the government has also deferred the Income Tax Self Assessment payments for the self-employed due on 31st July 2020 to 31st January 2021.
- Business Rates Holiday: for 2020-21 tax year for businesses in the Retail, Hospitality and Leisure sectors – no action needed will be applied to next council tax bill.
- Grants for retail, hospitality and leisure businesses: A £25,000 grant will be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.
- Small Business Grant Scheme: £10k for businesses (any sector) already receiving Small Business Rate relief – based on property occupation – available through the local authority.
You can further investigate these measures and their potential extensions and revisions here.
Highlights from UK Chancellor Rishi Sunak’s latest UK coronavirus conference held on 26th March:
The Chancellor unveiled a £9 billion self-employed income support scheme to help the self-employed survive the COVID-19 outbreak. He stated that, “the Government will pay self-employed people who have been adversely affected by the coronavirus a taxable grant worth 80 per cent of their average monthly profits over the last three years, up to £2,500 a month”.
The cash will be available for three months but that could be extended if the crisis continues for longer. HMRC is working on this urgently and expects people to be able to access the scheme no later than the beginning of June. If you are eligible, HMRC will contact you directly, ask you to fill out a simple online form and pay the grant straight into your bank account.
There is no doubt that the government is working tirelessly to come up with effective and generous schemes and ensuring that no one is left behind during this time. And Crowd for Angels is keen to help as well and support our community, so please don’t hesitate to get in touch with our Executive Chairman, Tony De Nazareth or Chief Executive Officer Andrew Adcock for advice or help better understanding the above-stated schemes and their long-term implications.
You can always even drop us a line at [email protected] and we will make sure to connect you with the best fit team member for your query.