Several new financial assistance measures have opened/been announced recently………
Coronavirus Job Retention Scheme – Furlough Claim
As most of you will be aware the scheme opened 20 April and, according to Rishi Sunak, 140,000 firms had made claims for 1,000,000 employees by 4pm on the first day.
Our own experience, so far, is that the CJRS portal is relatively straightforward to use as long as you have calculated the amounts that you are claiming and summarised the information required. See our Guide to Making a Claim
HMRC have also launched a calculator aimed at organisations with a small number of employees which you can use to check your calculation.
Please note that this currently only works for employees that are paid a regular monthly amount, and are not being paid a top-up of their salary above the 80% or £2,500 cap that can be claimed. It can also only be used for one employee at a time.
Coronavirus Large Business Interruption Loan Scheme
Announced last week, the CLBILS opened 20 April and is aimed at viable businesses with a turnover of more than £45m.
The scheme can provide facilities of up to £25m for businesses with turnover up to £250m and £50m for businesses with turnover exceeding £250m.
As with the smaller business scheme (CBILS) the loans are 80% government backed, however the finance terms are from three months to three years.
The borrower always remains 100% liable for the debt, but no personal guarantees will be required for facilities under £250,000 and for facilities exceeding this amount, claims on personal guarantees cannot exceed 20% of losses after other recoveries have been applied.
Your first port of call should be your bank manager and more details regarding eligibility can be found at:
Innovation Support Package
The Chancellor announced on 20 April that the government was providing an additional £1.25 billion support package to protect firms driving innovation in the UK by “giving them access to the capital they need in this difficult time”.
The package includes:
- A £500 million investment fund (The Future Fund) for high growth companies impacted by the coronavirus crisis. This will be made up from government and private sector funding.
- £750 million of targeted grants and loans for SMEs focusing on research and development though Innovate UK.
Coronavirus Future Fund
The Future Fund will be available from May 2020 and will provide convertible loans ranging from £125,000 to £5 million to innovative companies facing difficulties due to the coronavirus outbreak, provided that the loan is at least equally matched by funding from private investors.
This scheme may be an alternative for innovative businesses that rely on equity investment and are unable to access the Coronavirus Business Interruption Loan.
Full details on eligibility are yet to be announced, but initial information can be found here:
Innovate UK will accelerate up to £200 million of grant and loan payments to its existing customers, provide an additional £550 million to increase support for existing customers and £175,000 of support for around 1,200 firms not currently receiving support.
The first payments are expected to be made by mid-May.
For further support and guidance on these measures please contact your usual representative at Rayner Essex or fill out the form below and we will get back to you.
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