Lisa HoggView Profile
With the start of a new national lockdown, businesses once again find themselves in an uncertain position. Although the recent vaccine rollouts provide some hope of a return to normality, the forced closure for non-essential businesses is bound to make for a nervous couple of months.
Fortunately, in addition to furlough’s extension to the end of April, more business support has been announced to help those struggling get through the new lockdown.
Along with announcing a new lockdown on January 4th, 2021, the Government announced affected businesses in retail, leisure and hospitality sectors can apply for a grant.
This grant would be a one-off payment, and the rateable value of the property the business occupies decides how much they’re entitled to borrow:
- £4,000 for a value of £15,000 or less.
- £5,000 for a value between £15,000 and £51,000.
- £9,000 for a value of £51,000 or more.
Businesses can apply for these grants by speaking to their local authority.
Additionally, £594m has been designated to local authorities and devolved administrations in Scotland, Wales, and Northern Ireland. These funds are intended to support a business that can’t apply for the grants but is still affected by the new lockdown.
What’s the same?
Along with the new support, existing support schemes are set to continue into the spring, including the furlough scheme, which will continue until the end of April.
- Coronavirus Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme (CBILS) will be open for applications until the end of March.
For small and medium-sized enterprises (SMEs), CBILS allows access of up to £5 million in loans and financial solutions. 80% of the finance is guaranteed by the Government, paying the first year’s fees and interestMore on CBILS and other government support
- Bounce Back Loans
Like CBILS, the Bounce Back Loan Scheme is due to close for new applications at the end of March.
Bounce Back Loans were created after many businesses struggled in applying for Coronavirus Business Interruption Loans. Small and medium-sized businesses can borrow amounts from £2,000 up to 25% of their turnover, or £50,000. These loans are 100% guaranteed by the Government.More on Bounce Back Loans
As the country goes back into lockdown, a new grant will offer affected businesses funding to help deal with the additional restrictions. Businesses in the hospitality, leisure and retail industries can apply to local authorities for these grants, with the amount available depending on the value of the business’ property. The Government has also designated an additional £594m for businesses ineligible for the new grants. The current support schemes, such as the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme will stop accepting new applications at the end of March, with furlough lasting until the end of April.