As we sit here today, nearly 5 months on from going into lockdown, it is easy to underestimate the sheer size and scale of the unprecedented measures put in place by the government to support businesses, large and small, and shield them from the worst impact of the COVID-19 lockdown. Widely praised, the furlough scheme alone could cost £69 billion by the time it comes to an end. To put that into context, it is estimated the amount spent on bailing out the banks in 2009 was around £137 billion and most of this has now been repaid. Furlough costs won’t be.
Businesses almost unanimously battened down the hatches, attempted to shore up their finances and took advantage of the support offered by the government. Whilst many have gone on to thrive over the last few months, sadly, some have remained in a state of virtual hibernation or closed entirely.
As the debate rages amongst economists, the government and business communities about the viability of the current business support measures in place and their proposed closure dates, we wanted to keep you informed of the current state of play, so your business can take advantage if you haven’t already.
With this in mind, we have listed out a few of the most accessible government measures, including details on where you can apply and by which date. Please be aware that certain schemes will shortly be coming to an end.
Coronavirus Business Interruption Loan Scheme (CBILS)
Applications for the CBILS will close at the end of September 2020.
Today (18 August 2020), it was announced that CBILS lenders now have two more months to consider cases for medium-sized businesses, with a turnover of up to £45m, pushing the final approval date to 30 November 2020. The deadline for approving larger CBILS has been set for 31 December 2020.
Through the CBILS, you can access loans and other types of finance of up to £5 million.
To apply or for more information, visit the GOV.UK website.
Bounce Back Loan Scheme (BBLS)
The scheme will be open until 4 November 2020.
Small and medium-sized businesses can borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
FAQs regarding the BBLS can be found here.
Future Fund
The Future Fund scheme is open for applications until the end of September 2020.
The scheme provides government loans to UK-based companies, ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.
To apply or for more information, visit the GOV.UK website.
Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme will close on 31 October 2020.
From 1 August 2020, the grant amount will be reduced each month, up until the scheme’s close date.
For the latest updates to the Coronavirus Job Retention Scheme, visit the GOV.UK website.
If you have any questions regarding the above, contact the Langdowns DFK team on 023 8061 3000 or email [email protected].
Please note:Â The information provided above is correct as of 11.08.20. As you can appreciate, changes to government business support measures are happening regularly. If at the time of reading this you are unsure with the information provided, please contact us.
