This year has been very difficult for many businesses, and although official ‘lockdown’ has now been lifted, there are many areas across the UK with tighter restrictions in place that mean some businesses are still unable to operate – particularly those in the hospitality and leisure sectors.
As a business in one of these areas or across the UK, you may be feeling anxious about finances – we wanted to make you aware of the many funding options still available from the Government in order to help you navigate through the months ahead.
Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme has been extended until 31 March 2021. If you cannot maintain your workforce because your operations have been affected by Coronavirus, you can furlough employees and apply for a grant to cover a portion of their usual monthly wage. Businesses can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month.
Coronavirus Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support of up to £5million for SMEs impacted by Coronavirus. The Government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months. The scheme is open until 31 January 2021.
Business Rates Relief
Businesses in the retail, hospitality and leisure sectors in England will not have to pay business rates for the 2020 to 2021 tax year.
Local Restrictions Support Grant
The Local Restrictions Support Grant (LRSG) supports businesses that were open as usual, providing services in person to customers from their business premises but were forced to close between 5th November and 2nd December 2020 due to the national restrictions imposed by Government. Eligible businesses may also be entitled to a cash grant from their local council for each 28 day period under national restrictions.
Coronavirus Future Fund
Coronavirus Future Fund will issue convertible loans between £125,000 to £5 million, to innovative companies facing financing difficulties due to Coronavirus.
The scheme is open for applications until 31 January 2021.
For more information on funding available to your business and to check eligibility, head to the Government website: https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19#history