You have probably been bombarded with information on the above measures that the Government has taken to support and protect businesses of all kinds against the impact of the COVID 19 virus in the UK. There is a lot of information going out to businesses and employees at the moment. The information isn't static but evolving daily. I have received many calls and I understand your frustration and concerns. After several conversations with senior staff in Financial Institutions, Trade Body Associations and Funding Associations and reading subsequent follow up documents from the government, things are much clearer. The operational mechanisms for delivery and implementation are still being worked on in some cases.
As you now know, money will not come directly from the government to businesses. It's a wholesale process and it’s the British Business Bank that will be liaising with selected banks.
Key highlights however are:
1. The CBILS is being disbursed through the banks and even this is evolving with time
2. The schemes are taking time to set up HMRC and have said they will be ready for April 2020. However, banks are already taking loan applications through their EFG
3. Some of the information is changing rapidly
4. No matter how big or small you are the government is saying schemes will become available, ranging from Universal Credit for the Self Employed to Grants and Loans for SME's
5. Look at your insurance policy under the business interruption section to ensure that any business interruption by viruses is not covered already. The Government will not double fund what is already covered in your insurance. Some policies have fixed diseases they will cover and some don’t
6. Government will pay 80% of the salaries of staff who are kept (where it can be proven that these staff were about to be let go by their employers due to the virus crisis) covering wages of up to £2,500 a month – Part of the Job Retention Scheme
7. Please note that GRANTS only relate to business rates and you will be contacted directly by the local authority and not vice versa if you are entitled to this
8. Relief for Statutory Sick Pay
9. Mortgage Holidays even for Buy to Let properties
10. IR35 tax reforms postponed for a year
11. VAT and income tax deferments
12. Reclaims for Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.
13. Support for the Self Employed – Please click here for more details
For full details regarding CBILS, please click here
The key thing to note is grants are all rate related and will be dealt with by your local council. Loans will be through banks, mostly likely through the Enterprise Finance Guarantee (EFG) Scheme already in place, but with 80% government backed guarantees. Job retention will be through HMRC as they manage the payroll program and it is all linked to your reference numbers and UTR. Self Employment support will be through HMRC. Finance terms are from three months up to ten years for term loans and asset finance and up to three years for revolving facilities and invoice finance.
Facing Cash flow problems now, then please feel free to contact us and we will help broker and facilitate access at no cost to you. We will also offer guidance around eligibility and possibilities for raising finance.
If you want some help for your company with regards to the above or you just want someone with the required knowledge and experience in business to guide you on other related matters, please connect with our business advisers at RBSS Consulting Ltd on 0333 355 1696 or direct on 07796 800 187 or drop us an email. We provide real business solutions for start-ups and existing micro and small businesses.
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