Schemes to support business owners
Coronavirus Business Interruption Loan Scheme
South West Business Council (SWBC) have been working with the Regional Bank Directors and the Local Enterprise Partnership (LEP) to prepare a document to provide a template for those seeking loan funding and as a practical guide to support your business recovery plan.
The guidance notes are prepared in accordance with the recommendations from the British Business Bank.
Bounce Back Loan Scheme
The government’s Bounce Back Loan Scheme (BBLS) is now open for applications. Delivered by lenders accredited by the British Business Bank for this scheme, Bounce Back Loans target small and micro businesses in all sectors, providing loans from £2,000 up to 25% of the business’ turnover with a maximum loan of £50,000.
The Bounce Back Loans Scheme enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% a year. The government will cover interest payable in the first year.
- Up to £50,000 loan: Loans will be from £2,000 up to 25% of a business’ turnover or £50,000, whichever is lower
- 100% guarantee: The scheme provides the lender with a government-backed, full guarantee (100%) against the outstanding facility balance, both capital and interest. The borrower always remains 100% liable for the debt
- Interest rate: The government has set the interest rate for this facility at 2.5% per annum, meaning businesses will all benefit from the same, low rate of interest
- Interest paid by government for 12 months: The government will make a Business Interruption Payment to the lenders to cover the first 12 months of interest payable, so businesses will benefit from no upfront costs
- No principal repayments for first 12 months: Borrowers will not have to begin principal repayments for the first 12 months, thereafter capital will be repaid on a straight line basis
- No guarantee fee for businesses or lenders to access the scheme
- Finance terms: The length of the loan is for six years but early repayment is allowed, without early repayment fees
- No personal guarantees: No personal guarantees are allowed, and no recovery action can be taken over a principal private residence or principal private vehicle
Read more about how to apply for the BBLS on the Government's website.
Please note that any queries in relation to your specific circumstances must be directed to one of the accredited lenders and not to the British Business Bank.
The Coronavirus Statutory Sick Pay Rebate Scheme
A new online service was launched on 26 May for small and medium-sized employers to recover Statutory Sick Pay (SSP) payments they have made to their employees.
The Coronavirus Statutory Sick Pay Rebate Scheme is part of a package of support measures for businesses affected by the COVID-19 outbreak.
This scheme will allow small and medium-sized employers, with fewer than 250 employees, to apply to HMRC to recover the costs of paying coronavirus-related SSP.
Employers will be able to make their claims through a new online service from 26 May. This means they will receive repayments at the relevant rate of SSP that they have paid to current or former employees for eligible periods of sickness starting on or after 13 March 2020.
Tax agents will also be able to make claims on behalf of employers.
Self-Employment Income Scheme
The Self-Employment Income Support scheme is now live, enabling the self-employed to claim up to 80% of average profits (up to £2,500 a month) to cover loss of income between March and May 2020.
To apply first check your eligibility using the link below. Subject to eligibility you will need the following details to apply:
- Self Assessment Unique Taxpayer Reference (UTR) - if you do not have this find out how to get your lost UTR
- National Insurance number - if you do not have this find out how to get your lost National Insurance number
- Government Gateway user ID and password - if you do not have a user ID, you can create one when you make your claim
- UK bank details
Check your eligibility on the Government's website.
Apply online for the scheme.
Other business finance support options
You can find details of other government measures to support public services, people and businesses through this disruption on the Government’s Business Support website.
Guidance and support for your business during this period of uncertainty
The British Business Bank and The Institute of Chartered Accountants in England and Wales (ICAEW) have created new content to help businesses that are facing financial and operational challenges as a result of the coronavirus outbreak. You can view this regularly updated guidance at the Business Finance Guide website.