Covid 19 business schemes on offer by the government
Since its onset Covid 19 has drastically changed the way people live, study and work. While, many battled the health affects of the virus, others have struggled to cope with its countless other ramifications. The business sector especially has been severely impacted, from small to large scale businesses, to those self employed were shaken to their roots. The lockdowns and restrictions have prohibited several businesses from operating, thus putting a sizeable dent on their finance and even pushing them towards closure. To alleviate these problems and to help resuscitate their businesses, the government has launched several government and local authority initiatives. If you are one such business here is a list of schemes that you can avail:
Coronavirus Job Retention Scheme (CJRS)
This flagship support program of the government helps businesses to partly pay furloughed employees. This scheme was due to finish on the 31st of October, but now has been extended till the end of April 2021. Employees of businesses availing the scheme, will be paid 80% of their usual wages (capped at £2500).
Local Restrictions Support Grant (LRSG)
Businesses that were driven to close can apply for this scheme. The local restrictions support grant aids businesses that were forced to shut down for more than two weeks, due to local restrictions.
Local Restrictions Support Grant (LRSG (Open))
This grant is offered to businesses that were legally open during the lockdowns but were still adversely affected.
An added funding scheme was announced to facilitate retail, hospitality, and leisure businesses. It is provided on the basis of property and gives a one-time top-up grant to businesses in these particular sectors, which could not operate due to lockdown measures. The discretion to issue this grant is with the local councils, which will ascertain the deserving businesses for the grant.
Additional Restrictions Grant
This grant gives grant funding to local councils to help businesses at their discretion. This grant covers businesses that are not applicable for LRSG. This includes businesses that were closed post covid restrictions, as well as businesses that were severely impacted, but did not close. The grants are in comparison also greater in amount than LRSG (Closed).
There are the four loan schemes that the government has launched to facilitate businesses from recovering from their financial woes. They are:
- Bounce back loan scheme (BBLS)
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Coronavirus Large Business Interruption Loan Scheme (CLBILS)
- COVID Corporate Financing Facility (CCFF)
Self-Employed Income Support Scheme
SEISS is for self-employed personal that require financial assistance to combat the affects of the pandemic on their work. It is eligible for those who have an annual profit of less than £50,000 and at least half of their income is generated through self employment.
Coronavirus Future Fund
This fund issues loans to innovative companies, affected by Covid 19. The loan ranges from £125,000 to £5 million. This is a co-investment scheme that is facilitated by both the public and private sector. The goal is to help provide equity investment for startup companies.
Coronavirus Business Interruption Loan Scheme
The CBILS is an integral part of the British government’s efforts to ease the financial turmoil that businesses are facing, at an expedited speed. It is overseen by the British Business Bank, with the motive to restart the cash flow in companies, that have ran out of finances. This scheme is designed to provide SMEs immediate cash flow through government backed lenders, so that they can jump start their business again.