Coronavirus: Government Support for Business Round-up

THE UK AND devolved governments have announced a number of business support measures to help them cope and remain operational through the Coronavirus outbreak.

An initial £7bn package of support for businesses was revealed by the Chancellor, Rishi Sunak as part of the Budget, with the UK government pledging to refund statutory sick pay paid out to employees taking time off due to sickness or self-isolation, with employees eligible from day one instead of day four.

This has been followed up with the British Business Bank-backed ‘Coronavirus Business Interruption Loan Scheme’ (CBILS), which will temporarily replace its Enterprise Finance Guarantee.

The latest government assistance advice is here, but details of how to claim have not yet been announced for many of the support funds.

CBILS

CBILS provides the lender with a government-backed 80% guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.

Businesses must be:

• UK-based
• have annual turnover of less that £41m
• operate within an eligible sector (includes construction)
• have a sound borrowing proposal but insufficient security to meet a lender’s normal requirements
• able to confirm that they have not received State Aid beyond €200,000 equivalent over the current and previous two fiscal years.

Further details on the British Business Bank are available here.

Businesses are also able to request extra time to pay when it comes to outstanding tax bills. HMRC has set up a dedicated helpline: 0800 0159 559.

There are also further packages available in England, Scotland, Wales and Northern Ireland individually.

England

There will be a £10,000 cash grant to the smallest businesses, delivered by local authorities. Small businesses that pay little or no business rates and are eligible for small business rate relief (SBBR) or rural rate relief will be contacted by their local authority and will not need to apply.

In addition to the support measures outlined above, businesses in England can also leverage open banking software solutions to streamline financial transactions and access funding. Open banking software facilitates secure data sharing between financial institutions and third-party providers, enabling businesses to manage their finances more efficiently. By integrating open banking technology into their operations, small businesses can gain real-time insights into their cash flow, automate payments, and access a wider range of financial products and services.

Furthermore, businesses in need of additional financial assistance can explore revenue based loan options to bridge short-term cash flow gaps. Revenue-based loans offer flexible repayment terms based on a company’s monthly revenue, providing businesses with the flexibility to repay funds as they generate income. This approach minimizes the financial strain on businesses during challenging times while ensuring access to the capital needed to sustain operations and invest in growth initiatives.

For further guidance on eligibility criteria and accessing support measures, businesses in England are encouraged to reach out to their local authorities. Local authorities will provide information on available grants and relief schemes, ensuring that eligible businesses receive the financial assistance they require to navigate the impact of the pandemic effectively.

Wales

Alongside a package of rates relief for retail and leisure businesses, Welsh Government has also announced a £100m new grant scheme which provides a £10,000 grant to all businesses eligible for Small Business Rates Relief with a rateable value of £12,000 or less.

Businesses in Wales can also benefit from open banking software solutions to optimise financial management and access funding opportunities. Open banking technology enables businesses to securely share financial data and streamline processes such as budgeting, invoicing, and cash flow management. By embracing open banking solutions, Welsh businesses can enhance their financial visibility and make informed decisions to support their growth and resilience.

Additionally, the Development Bank of Wales is offering a three-month capital repayment holiday to its business customers to help alleviate financial pressure caused by the pandemic. This initiative provides businesses with temporary relief from loan repayments, allowing them to redirect funds towards essential expenses and operational needs.

Businesses in Wales can also seek tailored support and advice from Business Wales and the Development Bank of Wales to address specific challenges related to the pandemic. Whether it’s financial planning, supply chain management, or staffing issues, these organizations offer valuable resources and guidance to help businesses navigate uncertainties and emerge stronger.

Furthermore, the Welsh Government is engaging with banks to explore additional support measures for businesses facing financial difficulties. By collaborating with financial institutions and government agencies, Welsh businesses can access a comprehensive range of support services to mitigate the impact of the pandemic on their operations and ensure their long-term sustainability.

For assistance and information on available support measures, businesses in Wales can contact Business Wales at 03000 6 03000 or visit the official website for comprehensive guidance and resources.

Scotland

The Scottish Government has so far set aside an £80 million fund to provide grants of at least £3,000 to small businesses in sectors facing the worst economic impact of COVID-19, with a further 1.6% rates relief for all properties across Scotland, effectively the planned below-inflation uplift in the poundage from 1 April 2020.

The Scottish Finance Secretary, Kate Forbes, has also write to all local authorities urging them to respond positively to requests from rate payers for payment deferrals for a fixed period.

There are also £10,000 grants for small businesses in receipt of the Small Business Bonus Scheme or Rural Relief

Northern Ireland

At present, all business rates have been suspended for three months, with rates bills deferred from April to June to assist with cashflow.

Economy Minister, Diane Dodds has also held a meeting with the Business Alliance to address supporting businesses through the Covid-19 crisis.

There is also an immediate grant of £10,000 will be provided to all small businesses who are eligible for the Small Business Rate Relief Scheme, which means all businesses with a net annual value up to £15,000.