Support For Business During Coronavirus Crisis

Coronavirus is the crisis of the century for all of us. Due to the social distancing required to halt its spread, the food, drink and hospitality sectors have been especially badly hit. However the UK and Scottish Governments have developed a range of measures designed to save businesses and jobs. Details below:

 The temporary Coronavirus Business Interruption Loan Scheme will support small and medium-sized businesses with turnover below £45 million with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years.

The Government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.

The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the Government-owned British Business Bank.

There are 40 accredited lenders able to offer the scheme, including all the major banks.

More details here: https://www.businesssupport.gov.uk/coronavirus-business-interruption-loan-scheme/

 In addition the Coronavirus Jobs Retention Scheme will provide a grant to employers to keep their workers on rather than make them redundant. Salaries will be paid at 80% of their current level up to a maximum of £2,500. These grants will be available by the end of April and in the meantime £30bn of cash flow relief has been provided through the deferment of VAT bills. Coronavirus Job Retention Scheme (CRJS) will be administered by HMRC.

Employers will need to:

·       Designate affected employees as ‘furloughed workers’ (see further below)

·       Submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)

As noted above the grant is a reimbursement to the employer therefore the employer will make the wage/ salary payment to the furloughed worker and then be reimbursed by HMRC.

From next week, the Scottish Government will also have the following support measures in place:

 ·       a full year’s 100% non-domestic rates relief for retail, hospitality and tourism

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

·       £25,000 grants for hospitality, leisure and retail properties with a rateable value between £18,000 and £51,000

·       1.6% relief for all properties, effectively freezing the poundage rate next year

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More information is being added all the time so check back for further updates.