Coronavirus Business Interruption Loans and Finance
Jeremy Over | 27.04.2020
10.04.2020 Tessa Crawford
On 17 March 2020, the Chancellor issued an update in respect of a temporary financial package aimed at providing support for businesses.
Briefly, the confirmed measures include:
Statutory sick pay for employees off work because of COVID 19
Legislation is pending which will allow SME’s and employers to reclaim Statutory Sick Pay as a result of Covid-19. The government states that it will work with employers to set up the repayment mechanism to be used. The eligibility criteria (as set out on the government website) includes:
Business rates holiday for certain sectors
A business rates holiday for those in the retail, hospitality and leisure sectors:
You should approach your local authority with any questions about eligibility. The government has indicated it will provide guidance to local authorities this Friday, 20 March.
Those eligible for Small Business Rate Relief and Rural Relief
Those smaller businesses who pay little to no rates and are currently eligible for Small Business Rate Relief (SBRR) or rural relief may receive a one-off grant of £10,000. The government has stated that if you are eligible for SBRR or rural relief then you do not need to apply for this grant, and your local authority will contact you. It is understood that the government will provide local authorities with funding in early April to enable local authorities to issue these grants.
Coronavirus Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme is expected to launch next week (23 March). This scheme supports loans of up to £5 million and the first 6 months will be interest free. This scheme can be accessed by applying to one of the banks accredited to the Scheme. Further details can be found here - https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/for-businesses-and-advisors/
HMRC’s Time To Pay Scheme
If you are facing financial difficulties as a result of Covid-19, you may be able to claim for HMRC’s Time To Pay Scheme. Eligibility will depend on individual circumstances and liabilities. HMRC has set up a dedicated helpline number which you can contact on 0800 0159 559.
We will be providing further updates as and when the information is released.