Government-backed support available to SMEs

                 

5th May 2020

In what continues to be an uncertain and unprecedented time for businesses, the Government and funders are doing everything they can to help and support SMEs through this crisis. We understand that providing the right funding solution to ensure businesses have the cash flow to trade through these challenging times and beyond covid-19 is vital. In addition to our own funding solutions, we want to highlight a number of Government initiatives that have been launched to support businesses:

Coronavirus Business Interruption Loan Scheme (CBILS)
We are delighted to announce that we are now an accredited CBILS lending partner. The CBILS initiative helps small and medium-sized businesses access financial support in the form of leases and loans. Under the scheme, the government underwrites 80% of the value of the loan, with loans of up to £5m available to businesses.

The benefits of CBILS to SMEs are:

  • the scheme has no upfront costs, no interest payments for the first 12 months and lower initial repayments
  • no personal guarantees will be required
  • SMEs with an annual turnover of up to £45 million can apply for a Onepm CBILS term loan

To be eligible firms must:

  • be a Limited Company or Limited Liability Partnership
  • have been trading for more than 18 months and
  • have a good credit history with no arrears or defaults

For more information, visit: https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme

Bounce Back Loan
The Bounce Back Loan helps small businesses borrow up to 25% of their turnover, at a maximum loan amount of £50,000. It is a 100% government-backed scheme with no fees or interest to pay for the first 12 months. For more information, visit: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

Grant funding
A small business grant funding of £10,000 is available for all businesses in receipt of small business rate relief or rural rate relief. Local Authorities will make direct contact to provide details on how to claim this money. For more information, visit: https://www.gov.uk/government/publications/support-for-those-affected-by-covid-19
A grant funding of up to £25,000 is also available for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000. Local Authorities will make direct contact to provide details on how to claim this money. For more information, visit: https://www.gov.uk/government/publications/support-for-those-affected-by-covid-19

Covid-19 Corporate Financing Facility (CCFF)
This initiative supports larger businesses through the purchase of short-term debt. The scheme is delivered through commercial lenders, backed by the Bank of England.  For more information, visit: https://www.gov.uk/guidance/apply-for-the-covid-19-corporate-financing-facility

Coronavirus Large Business Interruption Loan Scheme (CLBILS)
The CLBILS initiative helps large businesses with an annual turnover of more than £45 million per year access up to £25 million of finance. Firms with a turnover of more than £250 million can access up to £50 million of finance. For more information, visit: https://www.gov.uk/guidance/apply-for-the-coronavirus-large-business-interruption-loan-scheme

Business Rates Holiday
A 12-month business rates holiday has been granted for all retail, hospitality and leisure businesses in England. For more information, visit:
https://www.gov.uk/government/publications/business-rates-retail-discount-guidance

HMRC Time To Pay Scheme
HMRC has a set up a helpline to support businesses and those self-employed who are concerned about not being able to pay their tax. For more information, visit:
https://www.gov.uk/government/news/tax-helpline-to-support-businesses-affected-by-coronavirus-covid-19

Statutory Sick Pay (SSP) Relief
The Government will refund businesses the first two weeks of SSP paid to employees who are unable to work due to covid-19. For more information, visit: https://www.gov.uk/statutory-sick-pay

Further information and advice
Further information and advice to support you and your business can be found here:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
https://www.british-business-bank.co.uk/ourpartners/supporting-business-loans-enterprise-finance-guarantee/
https://www.ukfinance.org.uk/policy-and-guidance/guidance/let’s-talk-business-covid-19
https://www.fla.org.uk/coronavirus-covid-19–updates/

We are here to support SMEs
We are very much open for business and continue to offer a range of funding solutions to support cash flow from invoice finance, asset finance, loans and vehicle finance. Here at 1pm we recognise there’s never been a more important time than now for businesses to support each other and we’re committed to ensuring our funding solutions reach those who need it.

For more information on how we can help, please don’t hesitate to get in touch on 01225 474230.