Coronavirus Update: Coronavirus Business Interruption Loan Scheme
- 24th March 2020
- No comments
The UK Government has announced unprecedented financial measures to support UK businesses during the coronavirus pandemic.
Coronavirus Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme (CBLS) is a temporary measure that aims to help UK businesses access bank loans and overdrafts during the coronavirus pandemic. The scheme will enable UK businesses with an annual turnover of less than £45million, access to borrowing of up to £5 million. Under this scheme, the UK government will also cover the first 12 months of interest payments and there will be no setup fee for qualifying businesses.
To summarise, the UK Government has announced the following measures to support businesses :
- a Coronavirus Job Retention Scheme
- 3-month extensions on filing accounts
- deferring VAT and Income Tax payments
- a Statutory Sick Pay relief package for small and medium sized businesses (SMEs)
- a 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
- small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
- a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
- the HMRC Time To Pay Scheme
We understand the escalating situation is putting immense pressure on businesses. If you need any specialist advice or support from our team of legal experts about the impact of coronavirus on your business, please email firstname.lastname@example.org or call us on 02920 224433.