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. Learn more about government financial support during COVID-19Link opens in a new window

Coronavirus Job Retention Scheme

If you cannot 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 Coronavirus Job Retention Scheme has been extended until 31 March 2021. You can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month.

You can claim for employees who were employed on 30 October 2020, as long as you have made a PAYE RTI submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee. This may differ where you have made employees redundant, or they stopped working for you on or after 23 September 2020 and you have subsequently re-employed them. The Government will review the scheme in January 2021.

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

The scheme has been extended. If you were not eligible for the first and second grantLink opens in a new window based on the information in your Self Assessment tax returns, you will not be eligible for the third.

HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.

To make a claim for the third grant your business must have had a new or continuing impact from coronavirus between 1 November 2020 and 29 January 2021, which you reasonably believe will have a significant reduction in your profits.

The third taxable grant is worth 80% of your average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total.

The online serviceLink opens in a new window to claim the third grant is open. If you’re eligible, you must make your claim for the third grant on or before 29 January 2021.

You do not need to pay the grant if you’re eligible, but it will be subject to income tax and self-employed National Insurance. You must also report it on your 2020–2021 Self Assessment tax return.