COVID 19 Business support

COVID 19 Business support

Recovery loan scheme

The recovery loan scheme ensures businesses can access loans and other finance of up to £10m per business once existing COVID-19 loan schemes close. The Government guarantees 80% of the finance to the lender. The scheme launches on 6 April 2021 and is open until 31 December 2021.
Finance terms are up to six years for term loans and asset finance facilities and up to three years for overdrafts and invoice finance facilities.
No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.
Businesses that have received support under existing COVID-19 guaranteed loan schemes will still be eligible to access this scheme.

Furlough scheme
The Government is extending the furlough scheme until the end of September 2021.
Employees will continue to receive 80% of their current salary for hours not worked with no employer contribution beyond NICs and workplace pensions required in April, May and June 2021.
From July 2021, the Government will introduce an employer contribution towards the cost of unworked hours of 10% in July 2021, 20% in August 2021 and 20% in September 2021.

Restart grants
Business Wales has up to date information the current support available in Wales – https://businesswales.gov.wales/coronavirus-advice/

Business rates
Business Wales has up to date information the business rates relief for businesses affected by Covid-19 available in Wales – https://businesswales.gov.wales/coronavirus-advice/support/business-rates-relief

Self-employment income support scheme (SEISS)
The Government confirmed that the fourth SEISS grant will be worth 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500 in total.
It will cover the period from February to April 2021 and can be claimed from late April. Self-employed individuals must have filed a 2019/20 tax return through self-assessment by midnight on 2 March 2021 to be eligible for the fourth grant.
A “fifth and final” SEISS grant will cover May to September 2021. Those whose turnover has fallen by 30% or more will receive the full grant worth 80%, capped at £7,500. Those whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850. The final grant can be claimed from late July.
Following the extension of the SEISS into the 2021/22 tax year, grants will now be included as income in the tax year in which they are received.
The rule will continue not to apply to any payments made to a partner distributed across the partnership, which is treated as income of the partnership.
A further extension of legislation will be applied to raise a tax charge equivalent to the amount of a SEISS grant to be recovered, where entitlement expired.

Statutory sick pay (SSP)
Small and medium-sized employers across the UK will be able to continue claiming up to two weeks of eligible SSP costs per employee. No closure date has been announced.