Covid-19 Business Update 3 – Wednesday 25th March 2020

Following our previous update on 23rd March 2020, please find below notable changes that have been released via gov.uk.

In places details remain limited, however, we will continue to update you promptly once further information is released.

Coronavirus Job Retention Scheme

There has been no further update since 23rd March 2020 however this is expected and we will update you as soon as possible.

Business Interruption Loan Scheme

Further details have now been launched:

The scheme will support SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.

The government will cover the first 12 months of interest payments and any lender fees, so there will be no upfront costs and lower initial repayments.

The government will provide a guarantee of 80% on each loan (subject to pre-lender cap on claims)

There are 40 accredited lenders able to offer the scheme, including all the major banks.
The scheme is backed by the government-owned British Business Bank.

You are eligible for the scheme if:

1. your business is UK based, with turnover of no more than £45 million per year;
2. your business meets the other British Business Bank eligibility criteria.

The scheme is now open for applications. All major banks are offering this scheme.

To apply, you should talk to your bank as soon as possible.

You can find out the latest on the best ways to contact them via their websites. Please note that branches may currently be shut down to enable social distancing.

The full rules of the scheme and the list of accredited lenders are available on the British Business Bank website.

If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.

We are preparing our staff to assist you with the application with regards to key information that will be required for this process which will include a summary document with an explanation of need, together with accounts and cashflows,

If you are considering a business interruption loan please contact us to talk through your options and what is best for the continuity of your business.

Support for Self Employed Workers

The government is expected to introduce support for self-employed workers imminently. We will update you as soon as this information is available.

HMRC Scam in relation to COVID-19

Please be aware that a scam has been identified pertaining to be from HMRC. This may be sent as a text message or an email.

The scam states:

“As part of the NHS promise to battle the Covid-19 virus, HMRC has issued a payment of £258 as a goodwill payment. Follow link to apply hmrc-cov19.payment.estrodev.com”

Please do not click on the link. If there is anything you are unsure about please contact us or HMRC directly.