Given the many government initiatives announced last week we wanted to turn our attention to how we best support you in the information we are giving if you are a business owner.
In the first instance you should review the recent announcements on government support and the current schemes are summarised below:
1. Coronavirus Business Interruption Loan Scheme
The Chancellor announced support for small businesses in the budget on 11 March. Details are subject to clarification but the scheme has been extended and brought forward to 23 March.
It will be provided through participating provider banks and will offer more attractive terms for both businesses applying for new facilities and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.
The scheme provides the lender with a government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’. The borrower always remains 100% liable for the debt.
The maximum value under the scheme will be £5 million.
The Government will cover the first 12 months of interest payments, so businesses will benefit from lower initial repayments. The business remains liable for repayments of the capital.
As well as loans, there are many other types of finance supported by the programme, depending on the provider.
2. Coronavirus Job Retention Scheme
3. VAT payments
4. Income tax payments
5. Universal Credit
A financial support package for the self-employed is also expected this week.