This is a developing article that will be updated regularly. Last updated 2 November 2020, 5:30pm
On 17th March 2020, the Chancellor Rishi Sunak announced further measures to support the economy. He said COVID-19 is “a public health emergency but also an economic emergency”, “will do whatever it takes” and “will go much further in the coming days”.
A key measure included the launch of COVID-19 (Coronavirus) Business Interruption Loan Scheme.
The Chancellor confirmed between £1,000 to £5 million will be available for SMEs via the COVID-19 (Coronavirus) Business Interruption Loan Scheme from 23rd March 2020. The scheme will run up until 30 November 2020.
The loan will be interest free for the first 12 months (government will cover the first 12 months of interest payments) and can be applied for via over 50 accredited lenders, including the big four banks — Barclays, HSBC, Lloyds and RBS.
You may be eligible for a loan if your business:
- is based in the UK
- has an annual turnover of up to £45 million
You must show that your business:
- would be viable if it were not for the pandemic
- has been adversely affected by the pandemic
The scheme is open to businesses in all sectors except banks, insurers and reinsurers, public-sector bodies and state-funded primary and secondary schools.
The government guarantees to cover 80% of the loan, with the banks retaining residual 20% risk. Banks may therefore request Personal Guarantees (PGs) on this proportion.
If you are thinking of applying, it would be wise to have the following information ready:-
- Cash flow statement showing the impact of COVID-19 over the next 3-6 months,
- Latest year end accounts,
- Latest management accounts (full P&L and Balance Sheet).
HOW TO APPLY FOR THE BUSINESS INTERRUPTION LOAN SCHEME
The Business Interruption Loan Scheme is available through the British Business Bank’s 50+ accredited lenders and partners, which are listed on the British Business Bank website.
In the first instance, businesses should approach their own provider – ideally via the lender’s website or email to the Relationship Manager.
FURTHER COVID-19 INFORMATION
26 May 2021
The latest in our series of quick-fire client interviews, Jeffreys Henry speaks to Dan Anton, co-founder of Lahpet. Lahpet started life as a pop-up in the railway arches of London Fields by co-founders Dan Anton and Zaw Mahesh, before opening their first permanent site in Shoreditch in 2018. Lahpet remains one of London’s only restaurants to specialise in Burmese cuisine. Dan talks about the success of DIY kits during lockdown, how they prepared for indoor re-opening as restrictions eased, and opening their second and largest site in the midst of the pandemic.
20 May 2021
The Business Recovery Loan Scheme (RLS) launched on 6 April 2021 as a replacement of the previous coronavirus loan schemes (BBLS, CBILS and CLBILS). It has been designed to support businesses of all sizes across the UK recover from the financial impact of the Covid-19 pandemic. The government-backed scheme is available via a range of lenders.
2 November 2020
The Government has extended the furlough scheme for a further month until the end of November, as England prepares to go into another lockdown.
28 October 2020
Yotam, who owns 6 restaurants in London, discusses how the new restrictions have been a hindrance to the recovery of the hospitality industry, what he believes the government should be doing to offer more support and where he sees the future of the industry.
23 October 2020
Rishi Sunak has announced new support measures for hospitality, accommodation and leisure businesses that fall under the Tier 2 coronavirus alert areas.
9 September 2020
In August, HMRC issued the first wave of compliance letters in regards to the Coronavirus Job Retention Scheme (CJRS) after moving into the post-transaction review phase of the scheme.
12 August 2020
Over 83,000 restaurants have now signed up for the government’s Eat Out to Help Out scheme, designed to protect jobs and boost sales in the hard-hit hospitality sector. In the first week alone, over 10.5 million meals were discounted, however, just how much is this helping the industry?
29 July 2020
Next up in a series of quick-fire client interviews held during lockdown, Jeffreys Henry LLP speaks to Emilio Sanz, CEO of Acurable, a London-based medical devices company. Acurable is known for the AcuPebble sensor, the first wearable medical device to accurately diagnose and manage respiratory conditions at home. Emilio speaks to us about how healthcare companies are adapting to the new normal, shares his advice for others in the industry and gives us an insight into the future of Acurable and medical technology.
15 July 2020
On 8th July 2020, the Chancellor, Rishi Sunak, delivered a “mini-Budget” in response to the Covid-19 outbreak, announcing several measures to support the Hospitality & Tourism industry, such as VAT cuts and the introduction of the “Eat Out to Help Out” scheme. We have summarised the key announcements and action points.
30 June 2020
Next up in a series of quick-fire client interviews held during lockdown, Jeffreys Henry LLP speaks to Carl Partridge, founder and CEO of UrbanThings, a London-based […]
