COVID-19: Essential information
COVID-19 : The Government-backed financial support available for small businesses
This page was last updated on 12th May
The Government has announced over £300 billion in funding to help small businesses survive COVID-19. In this post, we have included all the financial support for small businesses available from the Government and how to apply.
Bounce Back Loan Scheme (BBLS)
The Bounce Back Loan Scheme is open to the UK’s smallest small businesses who will be able to borrow between £2,000-£50,000 as of 4th May. The Government will provide lenders with a 100% guarantee and there will be no fees for small businesses for the first 12 months and no repayments will be due during this period either. Small businesses can apply quickly and easily by answering seven questions and the cash should be in accounts within days. You can find out which lenders are offering the scheme and apply here.
Coronavirus Job Retention Scheme (CJRS)
The CJRS allows employers to furlough their staff and apply for a grant that covers 80% of their salaries, up to £2,500 per month. The scheme is now live and funds are being released within six working days. You can find a step by step guide on how to apply here which includes more information about the scheme, calculating a claim, making the claim and what to do next. Don’t forget, you can furlough your staff multiple times as long as it’s for a minimum of three weeks.
Coronavirus Business Interruption Loan Scheme (CBILS)
CBILS will enable small businesses with an annual turnover of below £45 million to access up to £5 million in finance interest-free for the first 12 months. Larger companies with a turnover of up to £500 million can access loans of up to £25 million through the Coronavirus Large Business Interruption Loan Scheme.
To apply for the loan, you need to contact your finance provider to see if they qualify under the scheme. You can find further information on applying for a CBILS-approved loan here and what lenders need from you.
CBILS is accepting new lenders every day and Liberis is working hard to become one of its accredited finance providers in the coming days.
Cash grant – Small Business Grant Fund
Any small business that was eligible for Small Business Rate Relief or Rural Rate Relief as of 11th March could receive an emergency grant of £10,000 to support cashflow issues. You don’t need to do anything to access this – your local authority will contact you directly if you qualify for this grant.
Cash grant – Retail, Hospitality and Leisure Grant
Any retail, hospitality or leisure business could be eligible for a grant of up to £25,000 per property depending on the rateable value of your business property (you can calculate this here). Your local authority should contact you directly if you are eligible for this, but it is worth contacting them to see if you need to do anything as some have introduced an application process.
If you are concerned about paying tax during Covid-19, please contact HMRC. They have a dedicated hotline (0800 0159 559) and are on hand to talk through any tax concerns.
VAT will be deferred from March 2020 to June 2020 which means you will not need to pay anything during this period. This will happen automatically and no action is required from you.
Business rates holiday
Business rates will be slashed for all retail, hospitality and leisure businesses in England for the next year. Again, no action required – the rates will be removed automatically from your next council tax bill. If you would like to know how much money you will save, you can use the business rates calculator.
To see which financial support you may qualify for, you can use this quick and easy tool from the Government.
This post is being updated with the latest information so please check back soon and if you want more information about any of these measures or how Liberis can help you at this time. Feel free to contact one of our friendly agents should have any questions.
Disclaimer: The content of this page is a summary of the law in force at the present time and is not exhaustive. Any links to other sites, are provided for your information only: Liberis is not authorised to provide financial advice. If you access other sites using the links provided, we accept no responsibility for the content of those sites