Government support for businesses
This is a summary of the business support measures launched by the Government with links to the information on its website.
The Coronavirus Job Retention Scheme, known as the furlough scheme, will remain open until December, with employees receiving 80 per cent of their current salary for hours not worked, up to a maximum of £2,500.
Guidance for the new measures is available as well as details of the extended furlough scheme and other economic support.
Detailed information on all the financial support available from the government is available at gov.uk
Tax credits customers will continue to receive payments even if working fewer hours or furloughed due to coronavirus.
If you’re a self-employed individual, or a member of a business partnership, their business has been adversely impacted by coronavirus, you may be entitled to claim taxable grants if your business has been affected by coronavirus.
Customers can check eligibility using the self-employed checker tool.
Statutory Sick Pay Rebate Scheme
The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the Statutory Sick Pay (SSP) paid to current or former employees. Small and medium sized enterprises (SMEs) and employers can benefit from the scheme.
This scheme helps small and medium sized enterprises (SMEs) with access to working capital (including loans, overdrafts, invoice finance, asset finance) of up to £5 million in value and for up to six years.
The scheme is backed by British Business Bank and delivered by commercial lenders.
Eligibility: UK business, with annual turnover of no more than £45 million. You must meet other British Business Bank eligibility criteria.
The government has extended the maximum loan size available through the Coronavirus Large Business Interruption Loan Scheme from £50 million to £200 million.
Loans under the expanded scheme will be made available to large businesses affected by coronavirus from next week.
Changes also mean companies receiving help through CLBILS and the Bank of England’s Coronavirus Corporate Financing Fund will be asked to agree to not pay dividends and to exercise restraint on senior pay.
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.
Using this facility, the Bank of England will buy short-term debt from larger companies. This will support companies affected by a short-term funding squeeze.
The government has announced measures to protect commercial tenants who cannot pay their rent because of coronavirus from eviction.
You may be eligible for loans, tax relief and cash grants; this support finder will help you to see what support is available for you and your business.
SMEs focusing on research and development will also benefit from £750 million of grants and loans.
The Future Fund will provide government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors. The funds from the government must be used as working capital and not to pay off borrowing or to pay dividends or bonuses.
These convertible loans may be a suitable option for businesses that rely on equity investment and are unable to access the Coronavirus Business Interruption Loan Scheme. There is the option of loans being converted into equity rather than having to be redeemed.
A loan scheme to help small and medium-sized affected businesses.
- Cash will be released within days for eligible businesses
- Businesses can borrow between £2,000 and £50,000
- The government will guarantee 100 per cent of the loan and there won’t be any fees or interest to pay for the first 12 months
- Loan terms will be up to six years
- The government will work with lenders to agree a low rate of interest for the remaining period of the loan
- The scheme will be delivered through a network of accredited lenders
See further guidance on the scheme.