Below are 2 links which summarise everything released so far from the perspective of 1. helping businesses and 2. helping employees.
Within the two links you will see all of the significant Government measures being put in place, including the updates from yesterday.
The fundamental one however is still CBILS (Coronavirus Business Interruption Loan Scheme), without this and the banks help, many of the businesses which are currently being seriously affected will fold. We have now spoken to several banks and what we am hearing from them does not necessarily tally up to what the Government is inferring.
- If you HAVE enough company security to back up a new working capital facility, it may be better for your accountant to put together a fast track business proposal to send to your current bank because you may not be eligible for the scheme (unless they do actually change the existing rules).
- If you DON’T HAVE enough company security, CBILS could be based around the pre-existing British Business Bank schemes. Under those scheme’s, you have to give 100% Personal Guarantee’s ( so you could be personally exposed further than going for a standard loan). This is because when they say 80% guaranteed by the Government they actually mean, the Government requests a 100% Personal Guarantee from YOU but guarantee 80% back to your bank. However, this could all change as they haven’t released the facts yet! Everyone is continuing to work (for the moment!) under the old rules.
In conclusion, our advice is to start gathering all information (which would ordinarily be required for a standard additional facility) in readiness for submission later in the week.
Our staff, as always are contactable via email or telephone, if you have any questions on the above please contact us on 0114 266 4432.