The COVID-19 pandemic has resulted in a level of uncertainty and unique business challenges never seen before. We know just how difficult things are, and for that reason we wanted to let our customers know about the range of Government-backed emergency measures that are currently available for business support, should you need them.
These include the Coronavirus Business Interruption Loan Scheme, which offers loans of up to £5 million for SMEs through the British Business Bank. Interest free for 12 months, it’s designed to ease cash flow pressures during this temporary period of disruption. There’s also support available in the form of tax deferment, a job retention scheme and other relief packages.
Job Retention Scheme
The Government’s Job Retention Scheme is one of the most widely-known new policies. This scheme, if agreed by both employer and employee, allows employees to be kept on the payroll even if the effects of the coronavirus outbreak means that they are not able to perform their work.
Commonly known as being ‘on furlough’, employers will pay 80% of employees’ wages and then claim this back from the Government. It is important to note that if you furlough employees in order to avoid paying wages from your funds or making team members redundant, these employees cannot perform any work for your business.
More information can be found here.
Government Backed Grants & Loan Schemes
Specifically designed for small businesses (those who were previously eligible for the Small Business Rate Relief Scheme or Rural Rate Relief Scheme) and those in the hospitality and leisure sector, the Government has introduced grants to help fund these companies during the pandemic.
The Small Business Grant Fund allows eligible businesses to receive a payment of up to £10,000. The Retail, Hospitality and Leisure Grant allows those in receipt of the Expanded Retail Discount with a rateable value of under £51,000 cash grants of £10,000 or £25,000 per property.
More information can be found here.
The Coronavirus Business Interruption Loan Scheme (CBILS) has been put in place to support SMEs with an annual turnover of up to £45 million. This scheme will allow businesses to access loans up to £5 million over 6 years, with the first year interest free.
More information can be found here.
Business Rates Relief
Available to our customers who run pubs, shops and bars – or any hospitality business – in England, the Government are also offering a business rates holiday. These businesses will not have to pay business rates for the 2020 to 2021 tax year – a discount which will be automatically applied by your local council.
More information can be found here.
Mortgage Payment Holiday
All banks are now offering a 3 month ‘holiday’ on mortgage payments – essentially freezing the need to make monthly payments if business owners are affected by the pandemic. This eases the burden on personal finances if business has been affected – all that is needed is to show to your lender that your income has been affected by the coronavirus.
More information can be found here.
As a family-owned company, we understand how important it is to help each other during this tough time. We’d like to reassure you that we’re doing everything we can to keep our supply chain going strong and fulfil every last customer requirement.
We understand that importance of these strong relationships, the value of keeping lines of communication open and ensuring accounts are settled on time to maintain the strength of the supply chain through this difficult time.
We would like to thank each and every one of our customers for their understanding – stay safe and well.