COVID-19: Business Support Finder Tool and Further Updates
Our latest TurnerWarran business support post covers the most recent government updates regarding Coronavirus. This includes the announcement of a business support finder tool on the government site, the extension of the furlough scheme until June by the Chancellor, updates to the CBILS that now includes the support for larger businesses, and an expansion of the loan scheme for larger businesses.
The CLBILS Updates
CLBILS is a new scheme brought in by the Government on Monday 20th April that sits above the existing CBILS scheme for medium and larger sized businesses. Similar to CBILS, the scheme is designed to support businesses across the UK which have been impacted by Covid-19. The key differences from CBILS are shown below:
Note: Since the original announcement of the CLBILS scheme the government increased the amount of finance available – the final two bullet points in the list reflect these updated limits.
The eligibility criteria remain the same as with CBILS, with an additional point around Covid Corporate Finance Facility:
- UK based business
- Over 50% of revenue comes from trading activity
- The borrowing proposal would have been viable had it not been for Covid-19. In practice this looks to mean that the business was profitable for the 12 months to Dec 19 and could have taken on the proposed debt had it not been for Covid-19
- The business has been adversely impacted by Covid-19
- Not in one of the ineligible industries (Banks, insurers and reinsurers (but not insurance brokers); public-sector bodies; further-education establishments, if they are grant-funded; and state-funded primary and secondary schools)
- The business has not received funds from the Covid Corporate Finance Facility (CCFF) (https://www.bankofengland.co.uk/news/2020/march/the-covid-corporate-financing-facility)
More details on the CLBILS scheme are available here.
Chancellor Extends Furlough Scheme to the End of June
The Coronavirus Job Retention Scheme extended by one month to reflect continuing social distancing measures.
Following on from the recent Government announcement to keep the social distancing measures in place, Rishi Sunak said the Coronavirus Job Retention Scheme (CJRS) would now be open until the end of June – providing businesses with the certainty they need.
The scheme, which allows firms to furlough employees with the government paying cash grants of 80% of their wages up to a maximum of £2,500, was originally open for three months and backdated from the 1 March to the end of May.
See here for more details.
Government Expands Loan Scheme for Large Businesses
Chancellor Rishi Sunak unveils the final details of the Coronavirus Large Business Interruption Loan Scheme. The Chancellor announced a UK government-backed loan scheme for large businesses affected by coronavirus has been expanded to cover all viable firms.
The details are:
- All viable businesses with turnover of more than £45m will be able to apply for UK Government-backed support.
- Firms with turnover of more than £250 million can borrow up to £50 million from lenders.
- This complements existing support including the Covid Corporate Financing Facility and the Coronavirus Business Interruption Loan Scheme.
All firms with a turnover of more than £45 million will now be able to apply for up to £25 million of finance, and up to £50 million for firms with a turnover of more than £250 million.
Business with turnovers of more than £500 million were originally not eligible for the scheme, which is being set up to help firms who do not qualify for the existing Coronavirus Business Interruption Loan Scheme – for small and medium sized businesses – and the Bank of England Covid Corporate Financing Facility – for investment grade companies. The move, which comes after consultation with businesses, should ensure even more firms are able to benefit from UK Government support.
The scheme launches on the 27th April 2020, and the full details can be found here.
Government Launches New Coronavirus Business Support Finder Tool
The Government has launched a new ‘support finder’ tool which will help businesses and self-employed people across the UK to quickly and easily determine what financial support is available to them during the coronavirus pandemic.
The Support finder contains a new online platform that helps businesses easily access the financial support they are eligible for during the coronavirus pandemic and a simple questionnaire takes business owners a few minutes to complete and will signpost them to relevant government financial support.
See more information here, and please contact us if you need help with any of the Government support.
- Furlough Claim Calculator and Cash Grants for Frontline Charities
- Coronavirus Business Interruption Loan Scheme (CBILS) Update
- Coronavirus Business Interruption Loan Scheme (CBILS) Announced
- Business Rates Relief and Government Support Announced
- Government Relaxation of Financial Solvency Rules During COVID-19 Pandemic
- Increase in Working Tax Credits and Updated Business Guidance