19 Mar Interruption Loans & Grant Support Information announced within the budget
Following the recent government announcements on how they will be injecting funds into the UK economy to support local businesses, Tom Wilkinson from Beta Finance shares an update on how the finance is intended to be made available:
Coronavirus Business Interruption Loan Scheme
A new Coronavirus Business Interruption Loan Scheme will launch in the week commencing 23 March 2020. This will cover loans and overdrafts. The maximum is £1.2 million and there is no fee payable to the Government. This is borrowing that must be repaid, these are not grants.
To access the Scheme, you should talk to your bank or finance provider as soon as possible and discuss your business plan with them. This will help your finance provider to act quickly once the scheme has launched. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.
The lending decision is taken by each individual provider, not by government. To find the full rules of the Scheme and list of accredited lenders please follow this link and this will take you to the British Business Bank website. All the major banks will offer the Scheme once it has launched. There are 40 accredited providers in all.
A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will enable businesses to apply for a loan of up to £5 million, with the government covering up to 80% of any losses with no fees. Businesses can access the first 6 months of that finance interest free, as government will cover the first 6 months of interest payments.
Statutory Sick Pay
For businesses with fewer than 250 employees, the cost of providing 14 days of Statutory Sick Pay per employee will be refunded by the government in full. This will provide two million businesses with up to £2 billion to cover the costs of large-scale sick leave.
There will be a £10,000 cash grant to our smallest businesses, delivered by local authorities. Small businesses that pay little or no business rates and are eligible for small business rate relief (SBBR) or rural rate relief will be contacted by their local authority – they do NOT need to apply. The funding will be provided to local authorities in early April.
Guidance for local authorities on the scheme will be provided shortly.
Business rates holiday
Finally, the government is introducing a business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.
A £25,000 grant will also be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.
Any enquiries on eligibility for, or provision of, the reliefs should be directed to the relevant local authority. Guidance for local authorities on the business rates holiday will be published by 20 March.
Do you have any questions in regards to any of the above? Would you like to see how your business might be affected? If you know of any other business that might benefit from a conversation in terms of what is currently (or to be made) available to their business, then please don’t hesitate to contact us.
Please read updated information here – Coronavirus Business Interruption Loan Scheme