COVID-19 Advice for business – Government support extends for lockdown 2

Last week it was announced that support for the self-employed and businesses has been extended, due to the impact of COVID-19. As a result of the second lockdown that has come into place, the below Government support schemes are now eligible for applicants up until the 31^st of January 2021.

SEISS 

Who is eligible?

• Individuals must confirm that they are continuing to trade and intend to in the future

• Individuals who were previously trading but are no longer able to due to coronavirus
• Individuals who have been previously eligible for the Self-Employed Income Support Scheme first and second grant
• Confirm that they are impacted by reduced demand, as a result of COVID-19.

What do we know so far?

• The SEISS grant will be available during November at 80% followed by December and January at 40%. This gives individuals an average claim of 55% for the three months

• As previously applications must be made by the self-employed themselves
• The portal is expected to be open for applicants towards the end of November. More details will be provided in due course

CBILS

Who is eligible?

• Businesses who are UK based with up to £45 million turnover per annum
• Operate within an eligible sector
• Have a sound borrowing proposal (i.e. be an attractive company) but with insufficient security (assets) to meet a lender’s requirement
• Over 50% of turnover from trading activity (e.g. not from investments)
• Minimum of three years trading in the UK

What do we know so far?

• No repayments for the first 12 months
• The government will cover the first 12 months of interest repayments
• The government will cover the upfront fee
• No early settlement fees
• Rates between 1.8%-7.4% APR

CLBILS

Who is eligible?

• Businesses based in the UK
• Annual turnover over £45 million
• Businesses that have been affected by coronavirus
• Businesses that would be viable if the pandemic didn’t happen

What do we know so far?

• The loan will enable businesses to trade out of any short-term to medium-term difficulty resulting from coronavirus
• Businesses that can’t apply are: building societies, banks, insurers, reinsurers (but not insurance brokers), public-sector bodies, state-funded primary and secondary schools
• The loan is available from three months – three years
• A lender can provide up to 25% of your annual turnover. The maximum amount businesses can borrow is £200 million

Bounce Back Loan

Who is eligible?

• Businesses based in the UK
• Businesses established before the 1^st March 2020
• Has been adversely impacted by coronavirus

What do we know so far?

• The length of the loan is six years, but businesses can repay early without paying a fee
• Small and medium-sized businesses will be able to borrow between £2,000 and up to 25% of their turnover. The maximum amount that is available is £50,000
• The government has guaranteed 100% of the loan without any interest to pay for the first 12 months
• After 12 months, a 12.5% interest rate will be applied per annum
• If businesses already have a Bounce Back Loan but borrowed less than they were entitled to, they can top up their existing loan to their maximum amount. They must request the top-up by 31 January 2021

Future Fund

Who is eligible?

• If the business is part of a corporate group, only the parent company is eligible
• The business has been incorporated on or before 31^st December 2019
• The business has raised at least £250,000 in equity investment from third-party investors in the last five years
• Businesses that have half or more employees that are UK based or half or more revenues are from UK sales
• The scheme is suitable for companies that are unable to access to Coronavirus Business Interruption Loan Schemes (CBILs) and who are funded by external investors

What do we know so far?

• Loans will be provided to UK based companies ranging from £125,000 to £5 million
• The loans may be an option for pre revenue or pre profit businesses

For further information please contact a member of our team who will be able to assist you.