As the fallout from the Coronavirus pandemic continues, many businesses say they are teetering on the brink as revenues plunge following stay at home advice.
Thankfully, emergency funding of £330 billion will be put aside from the Government’s financial support package for businesses of all sizes in a bid to help those impacted by Coronavirus.
Rishi Sunak has vowed to do “whatever it takes” to help the economy with an “unprecedented package” including Government-backed loans equivalent to 15 per cent of GDP, with the potential to be extended further depending on the demand.
What’s Included in COVID-19 Emergency Funding?
- Government backed loans with attractive terms for payment of rent, salaries, suppliers or stock.
- For businesses in retail, hospitality and leisure, rates will be waived for 12 months for 2020/21.
- The Coronavirus Business Interruption Loan Scheme expanded from £1.2m to £5m with an interest waiver for first 6 months.
- Grants to small businesses eligible for Small Business Rate Relief will be increased from £3,000 to £10,000.
- Further £25,000 grants for retail, hospitality, and leisure businesses operating from smaller business premises defined as those within a rateable value between £15,000 and £51,000.
- £10,000 one-off grant to businesses that pay little or no business rates due to small business rent relief or rural rate relief.
- Small and medium sized business will be able to reclaim SSP for sickness due to COVID-19.
- Support for liquidity for larger business with a new scheme from the Bank of England.
- The advice to avoid pubs, clubs and theatres is sufficient to trigger a claim under business interruption insurance.
- Pubs and restaurants are able to provide a takeaway service without a planning application.
Full details of how these initiatives will work are due for release early next week. While further initiatives are also expected in the next few days focused on employment related issues.