Many businesses are facing financial difficulty due to the Coronavirus outbreak but there is help and support available.
The government has announced a substantial financial package to help those at risk with finance, designed to boost cashflow and provide an all-important lifeline during these difficult times.
To date there have been more than 130,000 enquiries from businesses across the country for business interruption loans, according to latest figures from UK Finance.
Almost 1,000 businesses have had finance approved, while banks are processing thousands of loan applications.
V4B Business Finance has been working tirelessly to help some of the thousands of businesses in need. Office staff are working remotely, and we have access to more than 40 funders which are accepting large volumes of requests and are continuing to inject businesses with vital funds.
We are providing free advice for businesses on finance issues such as unsecured business loans, VAT funding, asset finance, corporation tax, short-term loans and debtor finance.
Our business account managers are working around the clock to support those most in need and are often able to secure funds within 24 hours.
The following government support is also available for businesses: (source: Gov.uk)
Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme (CBILS) supports small and medium-sized businesses, with an annual turnover of up to £45 million, to access loans, overdrafts, invoice finance and asset finance of up to £5 million for up to six years.
The Chancellor is extending the scheme so that all viable small businesses affected by COVID-19, and not just those unable to secure regular commercial financing, will now be eligible should they need finance to keep operating.
The government is also stopping lenders from requesting personal guarantees for loans under £250,000 and making operational changes to speed up lending approvals. The first twelve months of interest and fees will be covered.
Job retention scheme
Employers with a PAYE scheme that was created and started on or before 28 February 2020, will be able to access support to continue paying part of their employees’ salary.
This applies to employees who have been asked to stop working, but who are being kept on the pay roll – ‘furloughed workers.’
HMRC will pay employers a grant worth 80% of an employee’s usual wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. The scheme will cover the cost of wages backdated to March 1st if applicable and is initially open for three months but will be extended if necessary.
Self-employed business owners
The scheme will provide a grant to self-employed individuals or partnerships, worth 80% of their profits up to a cap of £2,500 per month.
HMRC will use the average profits from tax returns in 2016-17, 2017-18 and 2018-19 to calculate the size of the grant. The scheme will be open to those where most of their income comes from self-employment and who have profits of less than £50,000. It will be open for an initial three months with people able to make their first claim by the beginning of June.
Business Rates holiday for retail, leisure and hospitality
Businesses in the retail, hospitality and leisure sectors in England will not have to pay business rates for the 2020-21 tax year. This also applies to nurseries – providers on Ofsted’s Early Years Register.
Cash grant for retail, leisure and hospitality
If your business is in the retail, hospitality or leisure sector, you will receive a cash grant of up to £25,000 per property.
Businesses in these sectors with a property that has a rateable value of £15,000 and under may be eligible for a grant of £10,000.
Those 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.
Small business grant funding
The government is providing additional 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.
Statutory sick pay rebate
The government will bring forward legislation to allow small and medium-sized businesses to reclaim Statutory Sick Pay (SSP) paid for staff sickness absence due to coronavirus. This refund will cover up to two weeks’ SSP per eligible employee who has been off work because of coronavirus.
COVID-19 corporate financing facility
The new Covid-19 Corporate Financing Facility (CCFF) means that the Bank of England will buy short-term debt from larger companies. This will support companies which are fundamentally strong but have been affected by a short-term funding squeeze.
Valued Added Tax (VAT) payments due between 20 March 2020 and 30 June 2020 will be deferred.
The Self- Assessment payment on account, that is ordinarily due to be paid to HMRC by 31 July 2020 can now be deferred until January 2021.