The Recovery Loan Scheme ensures businesses of any size can continue to access loans and other kinds of finance up to £10 million per business once the existing COVID-19 loan schemes close, providing support as businesses recover and grow following the disruption of the pandemic and the end of the transition period.
- The finance can be used for any legitimate business purpose, including growth and investment.
- The government guarantees 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses.
- The scheme launches on 6 April and is open until 31 December.
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With most of the UK currently placed under Tier 4 restrictions and another full lockdown looking increasingly likely, we thought it might be beneficial to summarise the support available to businesses at this time.
Coronavirus Job Retention Scheme (CJRS) – This job support scheme will continue to run until the end of April, with Government grants meeting 80% of the normal monthly wage, capped at £2,500 per employee per month. Employees can be fully furloughed or part-time furloughed.
Self-Employed Income Support Scheme (SEISS) – This support scheme for the self-employed or partners is set to run until the end of April with Government Grants available for the three months ending on 31st January of 80% of average profits capped at £7,500.
We await the Government to announce the grant level for SEISS for the three months to 30th April, but we expect this to be 80% of average profits capped at £7,500, in line with the CJRS.
Loan schemes – Both the Coronavirus Business Interruption Loan Scheme and the Bounce Back Loan scheme are still available until 31st March. They will provide loan support for businesses that have been adversely affected by COVID-19.
Local Restrictions Support Grants – These Grants are available for businesses required to close or cannot offer their normal service due to local restrictions, i.e. in Tier 4 all non-essential retail and pubs and restaurants. The business will be required to be closed for at least 14 days due to the restrictions. The Grants are based on the rateable value of the business premises, and the business can receive one Grant for each non-domestic property within the restriction area. The Grants are administered by the local councils, and you will need to contact them to apply for the Grant. The level of the Grants depends on the rateable value as follows:
||Grant every 14 days
|£15,000 or less
|£51,000 or less but above £15,000
If you require guidance on any of these changes, please contact our HR team at email@example.com or your TC adviser on 0330 088 7111.