An update on COVID-19
News on existing schemes and plans for new systems to help our UK businesses continue to come through from the Government. Here is an update on the schemes available.
Coronavirus Job Retention Scheme
The Job Retention Scheme has been extended to the 30th June 2020.
The Job Retention Scheme was introduced by HMRC to support businesses that are unable to maintain their current workforce due to the Coronavirus. If you have been directly affected you can furlough employees, that were on the company payroll on or before 19th March 2020 and apply for a grant that covers 80% of their usual monthly wages (up to £2,500 a month), plus the associated Employer National Insurance and Pension contributions.
The online portal to make the claims is now live with payments being made to employers within 6 working days.
The Bounce Back Loan
Rishi Sunak has now announced a new scheme described as “bounce-back” loans aimed at supporting small to medium sized businesses in the UK through the COVID-19 crisis, who may currently have trouble accessing credit.
The scheme is set to launch on the 4th of May and will allow those affected apply for a loan of up to £50,000 over up to a 6 year period. 100% of the loan will be backed by The Government and there are to be no fees or interest applied in the first 12 months.
Currently the terms state that provided your business is based in the UK, affected by Coronavirus and was generating a profit in December 2019 then you will be considered eligible however details on the application process are yet to be released.
Future Fund
Primarily geared towards Tech Startups, the Future Fund will look to provide government loans starting from £125,000 to up to £5 million, with the scheme set to launch in May 2020.
To be eligible your business has to have previously raised at least £250,000 in equity investment from third-party investors in the last 5 years and be able to attract the equivalent match funding from third-party private investors/institutions.
Please be aware that Future Fund doesn't currently include SEIS/ EIS investments.
More information on this can be found on our blog here.
If you have any questions about any of the above, please do get in touch with your Accountant at OnTheGo who will be happy to help.
