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Since the Coronavirus pandemic began causing significant disruptions to businesses, the government have introduced various forms of financial support that businesses may be able to access. There’s a wide range of schemes available but below is a selection of some of the useful schemes for SMEs. It is important to note that this is an advice piece on the new schemes introduced by the government and not a representation of what is available from Skipton Business Finance.
Listed below are some of the more notable schemes, how they work and where to find them.
Coronavirus Business Interruption Loan Scheme (CBILS)
The CBIL Scheme is a government-backed scheme designed to support UK SMEs that have been affected by the Coronavirus pandemic. The scheme supports finance options such as term loans, overdrafts, Invoice Finance and asset finance allowing businesses access to facilities of up to £5m for up to six years. The scheme is delivered to businesses through British Business Bank, which has over 40 accredited lenders of the scheme, including Skipton Business Finance. Businesses must be UK based, have a turnover of no more than £45m per year and the other British Business Bank eligibility criteria. Full details of the scheme including eligibility criteria is available on the British Business Bank website.
Coronavirus Job Retention Scheme
This scheme is designed for employers with a PAYE scheme which began on or before 28th February 2020. These employers will be able to access support to continue paying part of their employees’ salaries, who would have otherwise been laid off due to the ongoing pandemic. This refers to those who have asked to stop working but are being kept on payroll, also described as ‘furloughed workers’. HMRC will pay employees a grant covering 80% of an employee’s usual wage offering a total of £2,500 a month, as well as the associated Employer National Insurance contributions and minimum automatic enrolment employer pension on the subsidised wage. The scheme will cover the cost of wages backdating to 1st March if applicable and will initially be open for three months, pending review.
Those employers eligible include businesses, charities, recruitment agencies and public authorities.
You can find out more information here about the Job Retention Scheme.
Self-employment Income Support Scheme
This scheme is being created to support self-employed workers, including members of partnerships, whose income has had a negative effect as a result of Coronavirus. The scheme will provide a grant worth 80% of their profits up to a total of £2,500 a month. HMRC will calculate the sum of the grant by looking at tax returns from 2016-17, 2017-18 and 2018-19 and the scheme will be available for those who gain the majority of their income from self-employment and who have profits less than £50,000. This scheme is initially open for three months, will individuals able to make their claim before the beginning of June. Those who apply must have been trading from 2019-20 or currently trading (or would be if not for COVID-19).
You can find out more information here regarding the scheme and hot to apply.
Small Business Grant Funding
The government will be providing additional funding for small UK businesses via the local authorities. These small businesses already pay little or no business rates due to small business rate relief (SBRR), rural rate relief and tapered relief. The scheme will provide these businesses with a one-off grant of £10,000 to eligible businesses in order to help meet their ongoing business costs. Eligible businesses will be based in England, in receipt of small business rate relief, rural rate relief or tapered relief and is in occupancy of property.
Local authorities will write to eligible business with information about the grant, however more information can be found here.
There are various other support schemes that have been announced by the government and these can be found on the government website.
If you’d like to enquire about the CBIL scheme with Skipton Business Finance you can enquire today on our website.