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

The Coronavirus Business Interruption Loan Schemes, 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 until 31 March 2021:

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
  • New Pay As You Grow options to support Bounce Back Loan borrowers to manage their cashflow

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

These are just some of a number of measures the Government has announced. Learn more about government financial support during COVID-19Link opens in a new window

Coronavirus Job Retention Scheme

If you can’t maintain your workforce because your operations have been affected by coronavirus (COVID-19), you can furlough employees and apply for a grant to cover a portion of their usual monthly wage costs where you record them as being on furlough.

The Government created the Coronavirus Job Retention Scheme (commonly referred to as the furlough scheme) to protect workers’ jobs during the COVID-19 shutdowns. Rather than have to make redundancies, employers can place their staff on temporary leave – known as furlough – and have the scheme cover part of each worker’s pay while topping up the rest themselves.

The scheme was due to end on 31 October 2020, to be replaced by a new Job Support Scheme. However, the Government postponed the Job Support Scheme and extended the Coronavirus Job Retention Scheme (CJRS) to 30 April 2021.

In the Budget on 3 March 2021, the Government extended the furlough scheme again until 30 September 2021. The changes will come into force from JulyLink opens in a new window.

Read our guide to managing the end of furlough

Self-Employment Income Support Scheme (SEISS)

The Self-Employment Income Support Scheme (SEISS) will continue with a fourth and a fifth grant. The Chancellor announced on 3 March 2021 that more than 600,000 people, many of whom became self-employed in 2019–2020, may now be able to claim direct cash grants under SEISS.

You can read more about SEISS in our guide to managing the end of furlough. Full details of the scheme are set out on the Government's website at GOV.UKLink opens in a new window.

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.

Hospitality VAT rate

For businesses in hospitality, accommodation and attractions, the Government has extended the temporary 5% reduced rate of VAT until 30 September 2021. A 12.5% rate will then apply for a further six months, until 31 March 2022.

Apprenticeship incentive grants

In the Budget on 3 March 2021, the Government extended and increased the incentive grant offered to employers in England if they hire an apprentice.

These incentives were first introduced by the Chancellor in August 2020 and due to expire at the end of March 2021. Under the scheme, businesses are offered £2,000 to take on an apprentice aged between 16 and 24, while those businesses that employ an apprentice aged 25 and over receive £1,500.

The scheme will now run until the end of September 2021 and offers employers a £3,000 payment for every apprentice they hire, whatever the person's age.

Restart grant scheme

The Government has set up a new £5 billion restart grant scheme to help businesses in England that have been forced to close because of the COVID-19 pandemic.

Non-essential shops are the first to open in April 2021, and may be eligible for grants of up to £6,000 per premises.

There will also be a one-off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England.

You’ll need to apply for the restart grant scheme through your local council’s website.

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.