Covid-19: How can I get financial support for my business?

There is a lot of information going out to businesses and employees at the moment about financial support. The information isn't static and is evolving daily. Many businesses will be frustrated and concerned.

One of our clients, RBSS Consulting is available to help you find the best way to keep your business afloat during these challenging times. At the time of writing this, 23 March 2020, the operational mechanisms for delivery and implementation are still being worked on. Here is what we know so far:
 
Money will not come directly from Government to businesses. It's a wholesale process and it's the Government British Business Bank that will be liaising with selected banks. 
 
It is expected that by Tuesday 24 March, it will be clearer on how to get money out to businesses suffering now.

Key highlights however are:
 
1. The CBILS is being disbursed through the banks and even this is evolving with time
2. The schemes are taking time to set up and they think it will start to become available from Tuesday the 24th March
3. Some of the information is still changing rapidly
4. No matter how big or small you are, the government is saying that schemes will become available ranging from Universal Credit for Self Employed to Grants and  Loans for SME's
5. Look at your insurance policy under the business interruption section to ensure that this is not covered as the Government will not double fund
6. Government will pay up to 80% of salaries of staff who are kept (where it can be proved that these staff are about to be let go due to the crisis) covering wages of up to £2,500 a month. Does that mean the employer still has to pay the balance? Probably, yes
7. Please note that GRANTS only relate to business rates and you will be contacted directly by the local authority and not vice versa if you are entitled to this
8. Relief for Statutory Sick Pay available 
9. Mortgage Holidays even for Buy-to-Let properties
10. IR35 tax reforms postponed for a year

​Are you facing Cash Flow problems right now?
If yes, then patience and forbearance is what is requested, local authority, trade bodies, banks and brokers are all getting operational mechanisms in place. The key thing to note is Grants are all rate related and Loans will be through banks most likely through the Enterprise Finance Guarantee (EFG)
 

More detailed information is available from the Government website. Here are the participating banks and partners.

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TO BE ELIGIBLE FOR SUPPORT VIA CBILS, THE SMALL BUSINESS MUST:

• Be UK based, with turnover of no more than £45 million per annum
• Operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support or subject to limitations)
• Be able to confirm that they have not received de minimis State aid beyond €200,000 equivalent over the current and previous two fiscal years
• Be unable to meet a lender’s normal lending requirements for a fully commercial loan or other facility, but would be considered viable in the longer-term
• NB Full eligibility criteria will be published when the scheme goes live w/c 23 March 2020
• Finance terms are from three months up to ten years for term loans and asset finance and up to three years for revolving facilities and invoice finance.

To apply for an CBILS-backed facility, businesses may wish to consider approaching one or more participating lenders to discuss their borrowing needs.

There is a lot that is changing and information becoming obsolete in a matter of days.  So please keep listening and reading, or contact RBSS Consulting directly on 0333 355 1696.