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COVID-19 Government support and Grants available in 2021

Tuesday 5 January 2021

Written by Ashlee Bloom

COVID-19 Government support and Grants available in 2021

COVID-19 Government support and Grants available in 2021

Government grants will continue for the foreseeable future and certainly until 31 March 2021. The main grants and supports available now are outlined below. Please contact us if you need help in claiming any of these. 

 

Coronavirus Job Retention Scheme (CJRS)

The Coronavirus Job Retention Scheme has been extended until 30 September 2021. Find out more about how the scheme is changing.

Claims for furlough days in February 2021 must be made by 15 March 2021.

You can no longer submit claims for claim periods ending on or before 31 October 2020.

So far, the Coronavirus Job Retention Scheme (CJRS) scheme has protected 9.6 million jobs across the UK with more than one million businesses accessing loans to help them through the crisis.

Self-Employment Income Support Scheme Grant Extension (SEISS)

On 3 March 2021 the Chancellor presented the 2021 Budget, and as part of this announced the SEISS would be extended until the end of September 2021.

A fourth grant will be set at 80% of 3 months’ average trading profits, paid out in a single instalment, capped at £7,500. Unlike earlier SEISS grants, the grant will take into account 2019 to 2020 tax returns and will be open to those who became self-employed in tax year 2019 to 2020. The online claims service for the fourth grant will be available from late April 2021 until 31 May 2021.

A fifth grant is to cover May to September, and the size of the grant is to be determined, in part, by the amount a claimant’s turnover has reduced in the year April 2020 to April 2021. The grant will be worth:

  • 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduction of 30% or more
  • 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduction of less than 30%.

Applications of the fifth grant are to be opened from late July.

Coronavirus Business Interruption Loan Scheme 

The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months. It has been confirmed that the government-guaranteed Covid-19 business loan schemes will be extended until the end of March.
 

See:  https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme?utm_source=63fd2f34-693e-4f1b-b01c-6c90370bc39f&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

 

The Coronavirus Large Business Interruption Loan Scheme

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) provides financial support to larger businesses affected by coronavirus (COVID-19). The scheme helps medium and large sized businesses to access loans and other kinds of finance up to £200 million. The government guarantees 80% of the finance to the lender and is open to applications until March 2021

See: https://www.gov.uk/guidance/apply-for-the-coronavirus-large-business-interruption-loan-scheme?utm_source=61b117b3-7089-44f5-829b-af84c68c4fc9&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

 

Bounce Back Loans

The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months, the interest rate will be 2.5% a year. The scheme is open to applications until March 2021

See: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan?utm_source=c7cea23d-a8b9-43df-a18c-104d4423f70c&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

Restart Grants

£5 billion for new Restart Grants – a one-off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England.

Recovery Loan Scheme

The government Recovery Loan Scheme will start on the 6th April and run until 31 December 2021.

During his Budget reveal on the 3rd March 2021, Rishi Sunak set out plans for a new Recovery Loan Scheme that will kick-off on the 6th April 2021 and will run until 31st December. 

As explained by The British Business Bank, the scheme hopes to continue to support businesses affected by the pandemic and can be used for any legitimate business purpose, including managing cashflow, investment and growth. It is designed to appeal to businesses that can afford to take out additional debt finance for these purposes.

Features of the scheme will include:

Up to £10m facility per business

The maximum value of a facility provided under the scheme will be £10m per business. Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.

Turnover limit

There will be no turnover restriction for businesses accessing the scheme.
Wide range of products: Businesses will be able to choose from a variety of products: term loans, overdrafts, asset finance and invoice finance facilities.

Term length

Term loans and asset finance facilities are available for up to six years, with overdrafts and invoice finance available for up to three years.

Interest and fees to be paid by the business from the outset

Businesses will be required to meet the costs of interest payments and any fees associated with the facility.

Access to multiple schemes

Businesses who have taken out a CBILS, CLBILS or BBLS facility will be able to access the new scheme, although the maximum they are allowed to borrow will depend on their lender’s assessment and scheme requirements.

Credit checks for all applicants

Lenders will be required to undertake credit and fraud checks for all applicants. When making their assessment, lenders may overlook concerns over short-to-medium term performance owing to the pandemic. The checks and approach may vary between lenders.

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