We’ll guide you through the host of grants, schemes and packages of financial support available to your business.
With a myriad of schemes available we will continue to provide regular updates and how you can access the finance.
Bounce Back Loans Scheme (BBILS) **NEW**
Small businesses can apply for a loan of up to 25% of their turnover – classed as a fast-tracked loan of between £2k and £50k. Underwritten by the Government, Bounce Back Loans are interest free and fee-free for businesses for the first 12 months. No repayments will be due for the first 12 months and they have a flat rate of interest of 2.5% for the remaining loan period, which can be up to 6 years. Early repayment of the loan is allowed and there are no early repayment penalties. Visit the website to find a lender. Businesses who are already claiming under the CBILS scheme cannot apply, however if the CBILS loan is under £50,000 the business can ask their lender to transfer it to a Bounce Bank Loan instead.
Guidance on how to apply can be found here. We have also prepared a handy document to answer your questions, download your copy here.
Coronavirus Business Interruption Loan Scheme (CBILS).
CBILS allows you to access financial support interest free for the first 12 months, up to £5million underwritten by the Government across six years. Loans up to £250k do not require a personal guarantee but loans above £250k may at the lender’s discretion. Loans will not be secured against the Primary Residential Property (PRP). Lenders may offer alternative finance deals and businesses who have had their CBILs application rejected by one lender can apply to another lender.
This is applicable to SMEs based in the UK (including sole traders, Limited Liability Partnerships and Partnerships) with an annual turnover of up to £45m, led by the British Business Bank. A list of over 40 lenders can be found on the British Business Bank website. An informative guide is also available to download here.
Coronavirus Large Business Interruption Loan Scheme (CLBILS).
Firms with an annual turnover of over £45 million may apply for up to £35 million of financial business support and those with a turnover of more than £250 million may apply for up to £50 million. The Government provides lenders with an 80% guarantee on individual loans. This gives banks the confidence to lend to many more businesses which have been adversely affected by Coronavirus and the UK lockdown period. Businesses can self-certify that they have been impacted by Coronavirus, and that they have not received support under the Bank of England’s COVID-19 Corporate Financing Facility. Guidance on how to apply can be found here.
Please contact the Growth Hub team for more direct help and guidance on the scheme.
Coronavirus Job Retention Scheme
Where you can claim for 80% of wages plus employer National Insurance and pension contributions, if you have put your staff on furlough because of Coronavirus (COVID-19). The grant is capped at £2,500 per worker, it does not cover wages for workers who have been made redundant, but it can cover the cost of wages backdated to 1 March 2020. Check if you can claim a grant through the Self-Employment Income Support Scheme and read over the latest information in the handy guide.
The government’s Coronavirus Job Retention Scheme will remain open until the end of October, the Chancellor announced (Tuesday 12 May 2020).
Self-Employed Income Support Scheme – ** Now Open**
Self-employed individuals can apply for a one-off grant to cover 80% of the average monthly profits that they earnt over the last three years of trading. The grant is capped at £2,500 per month. It does not cover businesses who have traded for less than a year. Check if you can claim a grant through the Self-Employment Income Support Scheme here.
There is also a step-by-step guide available on YouTube.
Future Fund **NEW**
Announced by the Chancellor on 20 April, the Future Fund issues convertible loans to innovative UK companies with good potential, that typically rely on equity investment and are currently affected by Coronavirus. The scheme will help these companies through the current period of economic disruption and the recovery, so they are able to continue their growth trajectory and reach their full economic potential. The Scheme is designed by government and delivered by the British Business Bank.
The Government has made £250 million available for the Future Fund, and will keep this amount under review. The scheme is initially open for applications until the end of September 2020.
Applications for the future fund will open in May 2020. The Future Fund is a convertible loan of between £125,000 to £5million for high growth companies to enable them to continue to develop innovative new products and services – based on private investment match funding. These convertible loans may be a suitable option for businesses that rely on equity investment and are unable to access the CBILS.
Applicable to SMEs who are unlisted UK registered companies, who have previously raised at least £250,000 in equity investment from 3rd party investors in the last 5 years. The British Business Bank will release further details on the Fund, including how to apply, soon. Keep an eye our website and social media channels, where we will endeavour to add more information as and when it is available.
COVID-19 Corporate Financing Facility (CCFF)
A loan facility that raises working capital by purchasing the short-term debt of a business in the form of commercial paper. The scheme will operate for 12 months from March 2020 and appeals to large businesses including incorporated companies, those with foreign-incorporated partners and those who are headquartered in the UK. You must be able to demonstrate you were in sound financial health before Coronavirus. Lenders can be found on the link here.
UK Export Finance (UKEF) provides financial support for businesses exporting goods and services. Enquiries for the 2 options can be sent by email to email@example.com. The Export Working Capital Scheme, guaranteeing up to 80% of loan for businesses based in the UK, Isle of Man or Channel Islands and the Direct Lending Facility Scheme loans within an overall limit of £3 billion to overseas buyers, allowing them to finance the purchase of capital goods and/or services from UK exporters. The loans can be made in up to 8 currencies, with a value limit of £200 million and are fixed rate.
Your Local Authority currently has 3 types of grant support available, they will be identifying where you are eligible and will contact you directly.
** NEW** Discretionary Grant for Small Businesses
A one-off discretionary cash grant of up to £25k is available to support small businesses with up to 50 employees including those in shared spaces, regular market traders, small charities and Bed and Breakfast businesses that pay Council Tax rather than Business Rates with ongoing fixed property-related costs, who have seen a significant drop in income as a result of Coronavirus. This grant is discretionary to support businesses falling between the gaps of the other grant support schemes. The grant is also emerging – we will provide more details when available.
There is a one-off cash grant of £10k to support small businesses with disrupted operations/trade due to the Coronavirus pandemic.
Small businesses with a property who are already eligible for Small Business Rate Relief (SBRR) including those receiving tapered relief, and those already eligible for Rural Rate Relief (RRR). Businesses that were either liquidated or dissolved on or before 11 March 2020 are not eligible for a grant. Please note that the property must be for business use only and any properties that are occupied or used for personal use are excluded. State Aid rules apply (a business can only receive total grant/government financial support up to 200,000 Euros in a 3-year period).
A one-off £10k and £25k retail, hospitality and leisure grant is available to support businesses with disrupted operations/trade.
SMEs (up to 250 employees) with a rateable value of up to £15k will receive a grant of £10k, whilst those with a rateable value between £15k and £51k will receive a grant of £25k. Businesses in the retail, hospitality and leisure sectors with a rateable value of over £51k are not eligible for a grant. Businesses that were either liquidated or dissolved on or before 11 March 2020 are also not eligible for a grant. Please note that the property must be for business use only and properties that are occupied or used for personal use are excluded. State Aid rules apply (under a temporary State Aid framework business in the retail, hospitality and leisure sectors can only receive total grant/government financial support up to 800,000 Euros in a 3-year period).
Coalfield Covid-19 Recovery and Resilience Fund
Coalfields Regeneration trust have replaced their Coalfields Community Investment Programme (CCIP) with The Coalfields Covid-19 Recovery and Resilience Fund.
They are offering grants of up to £10,000 to businesses that are delivering support services or have adapted their services in order to respond to the current crisis and support vulnerable people. More details:
Facts about Taxation
Did you know? The Time to Pay scheme, run by HMRC, allows you to defer or delay payment of tax owed by setting up a tailored payment plan. This is applicable to all businesses including self-employed. For more information and to apply contact the national helpline on 0800 015 9559.
The Self-Assessment Tax Deadline has been extended and you will not have to pay your next bill until 31 January 2021. This is applicable to the self-employed, freelancers, contract workers and franchisees and you will be automatically contacted by the HMRC.
You can opt not to pay VAT from 20 March until 20 June 2020, the VAT is only deferred, and the scheme is VAT Suspension.
Mental Health at work
Click here to download the Mental Health and Wellbeing Resources Pack.
Hear about Business Rates
There is a 100% relief on the Business Rates Bill for the full 2020/21 period if you have up to 250 employees in the retail, leisure and hospitality sectors. Including public houses, the Government has removed the rateable value limit so if your premises are occupied you are eligible for the rate relief. Contact your local authority to apply.
Local authorities are also offering 100% Business Rate Relief for nurseries and childcare providers listed on Ofsted’s Early Years Register and who provide the Early Years Foundation Stage with a rateable value of up to £100k.
Due to the nature of all the schemes being made available, use this handy Coronavirus (COVID-19) business support finder to see what support is available for you and your business.