What Financial Support is Available for businesses during the COVID-19 Outbreak?
With the vast majority of the country practising ‘social isolation’ during the outbreak of the Coronavirus, we are seeing that more money is remaining in pockets and out of the cash flow of small businesses. We look at some of the solutions available to help businesses protect themselves through this potentially difficult time financially.
Government Support
An important cash saving for businesses right now is the use of government support. This includes the Time to Pay scheme from HMRC, so payments can be spread over more time, and relief on sick payments, where the government will refund the statutory sick pay for any employee for 14 days. This currently stands at £94.25 per week. The government is planning to work with employers in the coming months to set up the repayment mechanism.
The Government is offering cash grants of up to £25,000 to help struggling retail, hospitality and leisure businesses with the cost of rent and keeping premises. The rateable value of the premises must be between £15,000 and £51,000 to apply and payment comes directly from your local authority.
If your business is eligible for Small Business Rate Relief or Rural Rate Relief, you will be eligible for a grant of £10,000.
In addition, any UK retail, hospitality or leisure business can also receive a business rates holiday for the 2020/21 tax year.
Business Loans
Next week sees the introduction of the Coronavirus Business Interruption Loan Scheme for SMEs through British Business Bank partners. 80% of the loan will be secured against a government guarantee and interest is paid for by the government for the first six months, meaning that lenders should be more willing to lend.
There are of course faster funding solutions out there such as extending bank overdrafts, business credit cards, and alternative loans. The advice is to know your options and ‘multitrack’ enquires so that you can increase the likelihood of funding offers, as answers are likely to take time to come.
If you any questions, we are here to provide you with the support you need. Call us on 01273 441 187 or email info@peterjarman.com
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