Coronavirus: Financial
support for businesses

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Coronavirus: Financial
support for businesses

Learn more about the different types of financial support available for businesses operating during the coronavirus outbreak and where you can find more information.

Find coronavirus financial support for your business

The UK Government has created a simple business support finder to help businesses access the financial support available to them.

Coronavirus Business Interruption Loan Schemes and Future Fund

The Coronavirus Business Interruption Loan Schemes and Future Fund, managed by the British Business Bank, support businesses across the UK that are losing revenue and seeing their cashflow disrupted as a result of the COVID-19 outbreak.

The following schemes are currently available:

1. Bounce Back Loan Scheme (BBLS)

  • For SMEs, micro businesses and other businesses requiring smaller loans
  • Looking for between £2,000 and £50,000
  • Term loan repaid over six years
  • No set-up fees and first 12 months of interest payments covered by government
  • No repayments during the first 12 months

2. Coronavirus Business Interruption Loan Scheme (CBILS)

  • For smaller businesses with a turnover of less than £45 million
  • Looking for up to £5 million in finance
  • Business loans, overdrafts, invoice finance and asset finance available
  • First 12 months of interest and lender-levied fees covered
  • More than 50 accredited lenders

3. Coronavirus Large Business Interruption Loan Scheme (CLBILS)

  • For larger businesses with a turnover of more than £45 million
  • Looking for up to £200 million in finance
  • Business loans, overdrafts, invoice finance and asset finance available
  • Repayment terms of up to three years

4. Future Fund

  • Convertible loans from £250,000
  • From £125,000 to £5 million in government support
  • Third-party investors must at least match government support, with no maximum investment limit
  • Companies need to have previously raised £250,000 or more in equity investment

These are just some of a number of measures the Government has announced. You can find full details of the measures to support public services, people and businesses through this period of disruption caused by the coronavirus hereLink opens in a new window

Coronavirus Job Retention Scheme

Under this scheme, the Government covers 80% of the salary of PAYE employees who would otherwise have lost their jobs due to the coronavirus outbreak.

The scheme is open to all employers and covers wages backdated to 1 March 2020. It will continue for at least three months.

Cash grants from local authorities

The Government announced three grant funds for small businesses, available from local authorities.

Local authorities will inform small businesses if they are eligible for the grant — businesses should not need to make a claim.

1.  Small Business Grant Fund (£10,000)

Small businesses will receive a £10,000 cash grant if they:

2.  Retail, Hospitality and Leisure Grant Fund (£25,000)

 
Businesses that operate in retail, hospitality and leisure sectors and occupy premises with a rateable value of £15,000–£51,000 will receive a cash grant of up to £25,000.

3.  Local Authority Discretionary Grants Fund

 
Small and micro businesses that aren’t eligible for the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund may be eligible for the Discretionary Grants Fund.

Grants of up to £25,000 are available, and you can apply through your local council’s website.

Business rates holiday for retail, hospitality and leisure businesses

Retail, hospitality and leisure businesses in England will also benefit from a 100% business rates holiday for the 2020–2021 tax year.

Covid Corporate Financing Facility (CCFF)

Under this scheme, the Bank of England buys short-term debt from larger companies.

The facility is designed to support liquidity among larger firms, helping them to bridge coronavirus disruption to their cash flows through the purchase of short-term debt in the form of commercial paper.

It supports businesses that have been affected by a short-term funding squeeze and allow them to finance their short-term liabilities.

Self-Employment Income Support Scheme

This scheme helps self-employed people, or members of a partnership, who have lost income as a result of the coronavirus outbreak.

Individuals or partners can claim a grant worth 80% of their average trading profits from the tax years 2016–2017, 2017–2018 and 2018–2019.

The maximum amount available is £2,500 per month, for the three months the scheme will run (although the Government might extend this if necessary).