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COVID-19 financial support

COVID-19 (Coronavirus): Financial support for businesses

On this page, we summarise the different types of financial support available for businesses operating during the coronavirus outbreak and direct you to where you can find more information.

Find coronavirus support for your business

The UK Government has created a simple business support finder to help businesses find the financial support available to them.

Visit the business support finder

Coronavirus Business Interruption Loan Schemes and Fund

The Coronavirus Business Interruption Loan Schemes and Fund, managed by the British Business Bank, are designed to support small and large businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.

There are currently three schemes in operation:

  1. Bounce Back Loan Scheme (BBLS)

– For SMEs, micro businesses and other businesses requiring smaller loans
– Looking for between £2,000 and £50,000
– Term loan repaid over six years
– No set-up fees and first 12 months of interest payments covered by government
– No repayments during the first 12 months

Learn more about BBLS

2. Coronavirus Business Interruption Loan Scheme (CBILS)

– For smaller businesses with a turnover of less than £45m
– Looking for up to £5m in finance
– Business loans, overdrafts, invoice finance & asset finance available
– First 12 months of interest and lender-levied fees covered
– More than 40 accredited lenders

Learn more about CBILS

3. Coronavirus Large Business Interruption Loan Scheme (CLBILS)

– For larger businesses with a turnover of more than £45m
– Looking for up to £50m in finance (depending on turnover)
– Business loans, overdrafts, invoice finance & asset finance available
– Repayment terms of up to three years

Lenders will not take personal guarantees of any form for facilities below £250,000. For facilities above £250,000, personal guarantees may still be required, at a lender’s discretion.

Learn more about CLBILS

Future Fund

The Future Fund issues convertible loans starting from £125k to innovative companies currently being affected by COVID-19. The loans must be at least 100% match funded by third-party investors.

Designed for companies with good potential, that typically rely on equity investment, the scheme will help companies through this period of economic disruption and recovery, so that they are able to continue their growth trajectory and reach their full economic potential.

Eligible companies need to have previously raised £250,000+ in equity investment.

Learn more about the Future Fund

Coronavirus Job Retention Scheme

Under this scheme, the Government will cover 80% of the salary of PAYE employees who would otherwise have lost their jobs due to the coronavirus outbreak.

Due to begin in April, the scheme is open to all employers and will cover wages backdated to 1 March 2020. It will continue for at least three months.

For more information about the Coronavirus Job Retention Scheme, click here.

Cash grants from local authorities

The Government announced two cash grants for small businesses, available from local authorities.

Local authorities will inform small businesses if they are eligible for the grant — businesses should not need to make a claim.

£10,000 cash grant

Small businesses will receive a £10,000 cash grant if they:

For more information on this grant, click here.

£25,000 cash grant for retail, hospitality and leisure businesses

Businesses that operate in retail, hospitality and leisure sectors and occupy premises with a rateable value of £15,000–£51,000 will receive a cash grant of up to £25,000.

For more information on provisions for retail, hospitality and leisure businesses, Click here.

Business rates holiday for retail, hospitality and leisure businesses

Retail, hospitality and leisure businesses in England will also benefit from a 100% business rates holiday for the 2020–2021 tax year.

For more information on the business rates holiday, click here.

Covid Corporate Financing Facility (CCFF)

Under this new scheme, the Bank of England will buy short-term debt from larger companies.

The facility is designed to support liquidity among larger firms, helping them to bridge coronavirus disruption to their cash flows through the purchase of short-term debt in the form of commercial paper.

It will support businesses that have been affected by a short-term funding squeeze and allow them to finance their short-term liabilities.

For more information on the CCFF, click here.

Self-employment Income Support Scheme

This scheme has been put in place for those who are self-employed or who are a member of a partnership in the UK that has lost income due to COVID-19.

It will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 a month. It will be available for 3 months but may be extended.

The grant will be subject to Income Tax and National Insurance contributions but does not need to be repaid.

You can claim for the grant if you:

  • have submitted your Self Assessment tax return for the tax year 2018 to 2019
  • traded in the tax year 2019 to 2020
  • are trading when you apply, or would be except for coronavirus
  • intend to continue to trade in the tax year 2020 to 2021
  • have lost trading profits due to coronavirus

For more information on this scheme, click here.

Statutory Sick Pay Rebate

The Coronavirus Statutory Sick Pay Rebate Scheme repays employers the current rate of Statutory Sick Pay (SSP) that they pay to current or former employees for periods of Coronavirus-related sickness starting on or after 13 March 2020.

The repayment will cover up to 2 weeks starting from the first day of sickness, if an employee is unable to work because they either:

Note: Employees do not have to give you a doctor’s fit note for you to make a claim.

To find out more, click here

VAT Deferral

The government has made temporary changes to VAT payments due between 20 March 2020 and 30 June 2020 in order to help businesses manage their cashflow.

If you are a VAT registered business, you have two options;

  • defer the payment to a later date (up-to 3 months)
  • pay the VAT due as normal

HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.

If you choose to defer your VAT payment as a result of COVID-19, you must pay the VAT due on or before 31 March 2021.

Find out more here

Deferral of Self-Assessment Payment

Deadlines for tax bill payments are typically:

You can now delay making your second payment on account. If you choose to delay, you’ll have until 31 January 2021 to make payment.

Find out about more ways to pay here

Time To Pay

Businesses and self-employed people in financial distress, with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s ‘Time To Pay’ service.

These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

You will be eligible for this service if:

  • Your business pays tax to the UK government
  • Your business has outstanding tax liabilities

If you have already missed or are worried about missing tax payments due to COVID-19, get in touch with HMRC immediately here

Quotes
  1. Think through the impacts of major change in your particular market and your business as a result of COVID-19 - A contingency plan, where you’re going to be most effective or changes you can make in your business and what the consequences might be for your need for finance.

Stephen Pegge, Managing Director, Commercial Finance, UK Finance

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