Financial Support for business
In a previous article, we provided updates on financial support including the Coronavirus Job Retention Scheme, support for the self-employed and the Deferral of VAT and Income tax.
This article provides updates on other financial support available to businesses either by way of one of the grants, loan funding, time to pay arrangements and rates reliefs to ease cash flow in the interim.
The HMRC Time To Pay Scheme.
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive financial 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.
- The helpline number is 0800 024 1222 – and is in addition to other HMRC phone contact numbers.
- If you require assistance arranging a time to pay arrangement please contact us.
The Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank.
Support for businesses through the Coronavirus Business Interruption Loan Scheme
The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.
The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.
The government will provide lenders with a guarantee of 80% on each loan (subject to a pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank.
There are 40 accredited lenders able to offer the scheme, including all the major banks. You can find out more information here, though we would recommend you contact your bank in the first instance.
Latest NEWS business loan measures
Rishi Sunak has announced, yesterday, new support measures for businesses hit by the coronavirus crisis by bolstering business interruption loans for small businesses and announcing a new scheme for larger companies.
In a statement, the government said the move is intended to “maximise the support available” and means that all small businesses will now be eligible “should they need finance to keep operating during this difficult time” – not just those unable to secure regular commercial financing.
New rules will prevent lenders from requesting personal guarantees for loans under £250,000, and the government has also stated that it will make operational changes to speed up lending approvals and continue to cover the first twelve months of interest and fees.
Support for businesses that pay little or no business rates
The government will provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief. This will provide a one-off grant* of £10,000 to eligible businesses to help meet their ongoing business costs.
*While the grant is not repayable please be aware it is taxable income.
This is being administered by your local authority:
For Scotland: You can find out more information here. With links to your local authority, in the section, Local Authorities – coronavirus grant
For England: You can find your local authority here.
Financial Support for retail, hospitality and leisure businesses that pay business rates
A business rates holiday for retail, hospitality and leisure businesses will be for the 2020 to 2021 tax year.
Retail, hospitality and leisure businesses will get 100% rates relief. To get this relief, a property has to be occupied. Properties that have closed temporarily due to the government’s coronavirus advice will be treated as occupied.
Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.
Businesses in these sectors with a property that has a rateable value of up to £15,000 may be eligible for a grant of £10,000.
Businesses in these sectors with a property that has a rateable value of over £15,000 and less than £51,000 may be eligible for a grant* of £25,000.
For Scotland: You can find out more information here, with links to your local authority, in the section, Local Authorities – coronavirus grants.
In England: Your local authority will write to you if you are eligible for this grant. You can find your local authority here.
For more information on COVID-19 or financial support, get in touch here. Otherwise stay up-to-date with all the latest COVID-19 announcements, here.
