Help To Small Businesses: A Complete Guide To Loan Schemes
Friday, March 20th, marked the most significant blow to non-essential services in the wake of the lock-down announced by the Prime Minister of the UK. However, to minimize the losses, the government announced numerous government business loan schemes to support small and new ventures. Following is the complete guide.
Retail, Hospitality, and Leisure sectors
- No Business Rates
The new business grants the levy to pay no business rates for 12 months. There is no stipulated threshold and can be a huge assistance to small business loans. Local authorities will be duly responsible for the calculation of your bills.
- Cash Grant for Retail, Hospitality, and Leisure
A cash grant up to £25,000 can be obtained as per the new business grants. This is also wholly the local authorities’ reasonability and to infuse funds at the uncertain times.
Small to Medium businesses
- Small Business Grant Funding
This is applicable to businesses in England and falls under Small Business Rate Relief(SBBR). This allows you to receive a one-off grant of £10,000.
- Coronavirus Business Interruption Loan Scheme(CBILS)
This falls under small business loans where £5m can be borrowed if your business sees less than £45 million turnovers annually. It is available through British Business Banks.
- Statutory Sick Pay Rebate
You can access this if the number of employees is less than 250. A 2 weeks statutory sick pay per employee will be granted if he takes off due to coronavirus.
- VAT Deferral Scheme
This applies to all registered UK businesses. New business grants waive off on paying VAT up to 3 months. Liabilities are to be paid by the end of the ‘2020-21’ tax year. This is to lessen the cash flow and support the businesses by giving some breathing time.
- Time To Pay
Assisted by HMRC COVID-19 hotline, businesses facing a crunch to pay tax bills would be given a chance to protect their income. This is done by case-by-case. HMRC can be reached at 08000159559.
- Coronavirus Job Retention Scheme
It is another HMRC initiative to retain staff by paying a huge chunk of their salary up to £2,500 per month. The status of all sacked workers has to be added to the payroll. This can be dated back to March for three months and can be extended if the situation demands.
The government is assisting small business loans to the fullest. A mindful way to sustain is by managing inventory and supply chain, checking the cash flows, and applying for funding. The government business loan is to support small business owners and get them back to their feet.