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Finance - Business East Sussex

Coronavirus (COVID-19): Guidance for Employers and Businesses

Finance

This page will be regularly updated with financial information and guidance for businesses and employers during the Coronavirus (COVID-19) crisis. The guidance will include information published by the Government around emergency funding for businesses.

Coronavirus Interruption Loan Scheme: For all the latest announcements, please refer to the British Business Bank page specifically dedicated to the Coronavirus Interruption Loan Scheme. Click here to visit the BBB website for more information or alternatively message the Growth Hub by clicking on Contact Us.

 

Government Coronavirus Business Support

Follow the link below to access the Government Coronavirus Business Support site, which includes information on:

  • Coronavirus Business Interruption Loan scheme
  • Business rates holiday for retail, hospitality and leisure
  • Cash grant for retail, hospitality and leisure
  • Coronavirus Job Retention scheme
  • Small business grant funding
  • Statutory sick pay rebate
  • Time to Pay
  • COVID-19 Corporate Financing Facility
  • Business rates holiday for nurseries
  • VAT deferral
  • Income tax deferral for the self-employed

£330 billion support package for businesses

The Chancellor Rishi Sunak has announced a £330 billion support package for business and workers to protect against the economic emergency caused by the coronavirus.

This includes unlimited loans and guarantees to support firms and help them manage cashflows through this period. The Chancellor will make available an initial £330 billion of guarantees – equivalent to 15% of UK GDP.

This includes a package of measures to support businesses including:

  • a statutory sick pay relief package for SMEs
  • a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
  • small business grant funding of £10,000 for all 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
  • the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
  • the HMRC Time To Pay Scheme

Coronavirus Business Interruption Loan Scheme

A new Coronavirus Business Interruption Loan Scheme launched on the23rd March. This will cover loans and overdrafts. The maximum is £1.2 million and there is no fee payable to the Government. This is borrowing that must be repaid, these are not grants.

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.

The Scheme will support business loans and overdrafts of up to £5 million in value by providing a guarantee to the lender. The Government will not charge businesses for this guarantee. The scheme will also cover asset finance and invoice finance.

The decision on whether to offer finance is taken by each individual lender, not by government. Businesses remain responsible for repaying any borrowing that they take out.

In order to access the scheme, businesses should contact their finance provider, not the British Business Bank.

To access the scheme, you should talk to your bank or finance provider as soon as possible and discuss your business plan with them. This will help your finance provider to act quickly once the scheme has launched. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.

Bank of England package of measures

The Bank of England has announced a comprehensive package of measures to help UK businesses and households bridge across the economic disruption that is likely to be associated with COVID-19.

Interest rates have been reduced from 0.75% to 0.25% and additional funding will be available for banks to increase lending, especially to SMEs.

Budget support package for businesses, public services and individuals

The Chancellor announced a package of measures to provide support for public services, individuals and businesses affected by COVID-19.

  • A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will enable businesses with a turnover of no more than £41 million to apply for a loan of up to £1.2 million, with the Government covering up to 80% of any losses with no fees. This will unlock up to £1 billion pounds to protect and support small businesses.
  • For businesses with fewer than 250 employees, the cost of providing 14 days of statutory sick pay per employee will be refunded by the Government in full. This will provide 2 million businesses with up to £2 billion to cover the costs of large-scale sick leave.
  • A dedicated helpline has been set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities to receive support with their tax affairs. Through this, businesses may be able to agree a bespoke Time to Pay arrangement.
  • There will be a £3,000 cash grant to 700,000 of our smallest businesses, delivered by Local Authorities, and worth a total of £2 billion.
  • Finally, the Government is temporarily increasing the Business Rates retail discount in England to 100% for 2020-21 for properties below £51,000 rateable value. Nearly half of all business properties will not pay a penny of business rates.

Facebook Small Business Grants Program

Facebook is offering $100 million in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries where the company operates.

Money Advice Service

Coronavirus and your money

If you have to take time off work because of coronavirus there are a number of support measures in place. Follow the link below to find out more.

Coronavirus – what it means for you and what you’re entitled to

The spread of coronavirus, also called COVID-19, in the UK and across the world could have implications for your work, benefits and travel plans. This guide will look at your rights to sick pay, what benefits you can claim if you’re self-employed or not entitled to Statutory Sick Pay (SSP).

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