Following its latest update, the government has unveiled a package of support to help businesses during the Covid-19 pandemic. It includes £330bn in loans, £20bn in other aid, a business rates holiday, and grants for retailers and pubs.
£330bn of loans
Businesses will be able to take advantage of £330bn of government-backed loans – 15 per cent of the UK’s GDP – via two schemes, one for large firms, one for small and medium-sized ones. Companies will be able to apply for a loan of up to £5m
Support for businesses that pay business rates
The Chancellor announced that the government will be introducing a business rates retail holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.
Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible.
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.
Support for businesses that pay little or no business rates
The government will provide additional funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR). This will provide a one-off grant of £10,000 to businesses currently eligible for SBRR or rural rate relief, to help meet their ongoing business costs.
If your business is eligible for SBRR or rural rate relief, you will be contacted by your local authority – you do not need to apply.
Funding for the scheme will be provided to local authorities by government in early April.
Support for businesses through the Coronavirus Business Interruption Loan Scheme
A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch next week to support businesses to access bank lending and overdrafts. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value. Businesses can access the first 6 months of that finance interest free, as government will cover the first 6 months of interest payments.
You will need to speak to a finance provider (or broker working on their behalf) who is a partner of the British Business Bank listed below:
- ABN AMRO Commercial Finance
- ART Business Loans
- Bank of Ireland (Northern Ireland)
- Bank of Scotland
- BRS Business Loans
- Business Enterprise Fund West North Yorkshire
- Calverton Finance
- Chamber Acorn Fund Humber
- Clydesdale Bank
- Compass Business Finance
- County Asset Finance
- Coventry Warwickshire Reinvestment Trust
- Danske Bank Northern Ireland
- DSL Business Finance Scotland
- Enterprise Answers Cumbria
- Finance for Enterprise (Donbac)
- Enterprise Loans East Midlands
- GC Business Finance
- Genesis Asset Finance
- Hitachi Capital Business Finance
- Let’s Do Business Group
- Lloyds Bank
- Merseyside Special Investment Fund
- Metro Bank
- Newable (formerly GLE)
- Robert Owen Community Banking
- Skipton Business Finance
- South West Investment Group (SWIG)
- The Royal Bank of Scotland
- UK Steel Enterprise (UKSE)
- Ulster Bank
Support for businesses paying tax
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
Source: Official Government Website.
If you need any further support with the above, or have any additional enquiries, please contact your usual Albert Goodman contact via email, telephone – 0330 333 5039 or reach out via one of our social media channels, Twitter or Facebook.