As the UK endures it’s third period of Covid-related lockdown and with many non essential businesses now closed, it’s vital to understand what financial support is available from the Government.
With your business closed, or running with a minimum team of essential workers, income is likely to have reduced and this is bad news. Many micro and small businesses will be struggling financially.
The government have been put in some measures for financial support to help supplement your cashflow and get your business through the challenges of the next few months of lockdown. But what financial support is available at this current time?
Available Government Financial Support – January 2021 *
During the spring 2020 lockdown period, the Government provided a range of financial support schemes with the aims of helping keep many UK businesses financially solvent and therefore protecting both the economy and jobs.
So, are any of these schemes available still in early 2021? Here’s out summary of the current position:
- Coronavirus Job Retention Scheme (CJRS) – the CJRS, or the ‘furlough scheme’ as it is commonly known, is still very much in operation and provides government funding to cover the wages of eligible furloughed workers. The furlough scheme will pay 80% of your employees’ wages and has been extended until 30 April 2021. Find out more about the furlough scheme here
- Coronavirus Business Interruption Loan Scheme (CBIL) – CBIL loans are still available for many businesses and allow your business to access loans and other kinds of finance up to £5million. The Government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months. Applications are now open until 31 March 2021. You are likely to be required to complete a financial forecast so please contact us if you need any assistance. Find about more about the CBIL scheme here
- Bounce Back Loan Scheme (BBLS) – you can also still apply for Bounce Back Loans, which offer smaller businesses the chance to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The BBLS is now available until 31 March 2021. Find out more about the BBLS here
- Lockdown grants – at the beginning of January 2021, new lockdown grants for businesses in the retail, hospitality and leisure sectors were announced. Eligible businesses in the affected sectors will be able to claim a one-off grant worth up to £9,000. Local Restriction Support Grants will also be available through your local authority, with qualifying businesses able to claim grants of up to £3,000 a month. You will need to check your local council website for further details with many offering online applications. Find out more about lockdown grants here
- Self-Employment Income Support Scheme (SEISS) – if you’re self-employed and have traded in the preceding two tax years, the third round of the Self-Employment Income Support Scheme is still available. The scheme closes to claims on 29 January 2021 (only a few days away) and allows you to claim 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total. Find out more about the SEISS here
Talk To Us About Claiming Any Government Financial Support
If your business has been adversely affected by Covid-19, or you’ve been forced to close due to the UK-wide lockdown, please do contact us. We will be able to review your financial position, advise you on which schemes you’re eligible for, and will help you to produce the relevant financial information that’s needed when making a loan or grant application.
This first quarter of 2021 is a tough time for many business owners, so reach out now and let us help you get the financial assistance and funding you need.
Get in touch to talk through the government financial schemes.
* Subject to change so please check the latest government guidance.