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Coronavirus: Government announces financial support for business

The Chancellor has set out a package of temporary measures to support businesses in the short term.  These measures included:

  • statutory sick pay relief package for SMEs
  • 12-month business rates holiday for all retail, hospitality and leisure businesses in England
  • small business grant funding of £10,000 for business in receipt of small business rate relief or rural rate relief
  • grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
  • introduction of the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses which may need to respond to cash-flow pressures by seeking additional finance*
  • HMRC Time To Pay Scheme

* The ‘Coronavirus Business Interruption Loan Scheme’ launch has been brought forward since announcement in the Budget on Wednesday 11 March.

The scheme is expect to become available  week commencing 23 March 2020.

The Scheme will be provided by the British Business Bank through participating providers. The scheme will provide the lender with a government backed guarantee against the outstanding facility balance – the borrower shall remain liable for the debt.

The maximum value of a loan provided under the scheme will be £5m.

The Government will also cover the first 6 months of interest payments, so businesses will benefit from lower initial repayments. The borrower remains liable for repayments of the capital.

The scheme is open to businesses with a turnover of less than £41m (as long as the business is long-term viable and is UK based) which meet the scheme’s further eligibility criteria.

For further information please see:-

Houses of Parliament Photo by Dominika Gregušová from Pexels