A new scheme was introduced by the chancellor last night that is expected to be implemented from the 4th of May.
Update on current schemes:
- The Furlough portal was opened on the 20th of April as promised, and despite the odd glitch and a few unnecessarily long winded processes, the system works well and firms can expected their claims after 6 working days of submission. If you still require a furlough claim preparing please get in touch.
- Most grants that were applied for have been received by now. If you have applied but not yet received it, or if you haven’t yet applied but are eligible for the grant, please contact your local council.
- Despite the CBILS scheme not being quite what is was made out to be, the government did relax the personal guarantees and the application process a little and the banks are now lending where suitable. If you need help applying for the loans please let us know.
In yesterday’s government briefing, the chancellor announced a new government backed loan for small businesses. This appears to be a much quicker and easier scheme than the more onerous CBILS but time will tell if this is the case! The key information that we know so far, is:
- Businesses are able to borrow between £2,000 and £50,000 (limited to 25% of the business turnover).
- The government will guarantee 100% of the loans.
- There will be no arrangement fees and no interest payments for the first 12 months.
- Loan terms will be up to 6 years, with repayments starting after 1 year.
- You must have been ‘negatively affected’ by coronavirus, and not have been experiencing difficulties prior (at 31 December 19).
- You cannot access this scheme if you have already accessed CBILS funding, however you may be able to switch from the CBILS scheme to this one if suitable.
We are expecting more information in due course, but if you think this scheme may be suitable for you we would be happy to discuss in more detail and assist with any application. Please contact us on 0114 266 4432 or [email protected] should you need to speak to one of our Chartered Accountants.