Although we are approaching the 1-year anniversary of the first UK lockdown, many businesses continue to feel the financial impact of coronavirus. There are still a number of financial support schemes available to help businesses and the self-employed stay afloat and ‘bounce back’ once restrictions are lifted. Here’s a summary of the key business support schemes.
In December 2020, the Chancellor extended access to the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme and the Coronavirus Large Business Interruption Loan Scheme until the end of March. If you intend to access any of these schemes you must apply soon.
Find out more here.
A new loan scheme to replace those coming to an end was announced in last week’s Budget.
The Recovery Loan Scheme (available from From 6 April 2021) will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million. This guarantee shoudl give lenders the confidence to provide finance to UK businesses. The scheme will be open to all businesses, including those who have already received support under the current COVID-19 guaranteed loan schemes.
- Restart Grants of up to £6,000 per premises will be available for non-essential retail businesses in England.
- Hospitality, accommodation, leisure, personal care and gym businesses will be able to claim up to £18,000 per premises.
These grants will provide the cash certainty needed to plan ahead and safely resume trading over the coming months.
Self-Employment Income Support Scheme (SEISS)
It has been confirmed that there will be a fourth support grant available for the self-employed worth 80% of three months’ average trading profits (capped at £7,500). The fourth grant covers the period February -April 2021 and can be claimed from late April 2021.
The scheme has been extended to include those that became self-employed relatively recently. To be eligible, you will need to have filed a 2019/20 self assessment tax return prior to 3 March 2021.
A fifth and final grant can be claimed from late July 2021 to cover the period May to September 2021. This grant will be determined by a turnover test which must show that the business turnover has fallen by 30% or more. People whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850.
You can find details of all the above government support schemes online here.