Bounce Back Loans scheme (BBLS) - The scheme will offer loans from £2,000 up to 25% of a business’ turnover or £50,000, whichever is lower. The Government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. The government has then set the interest rate for this facility at 2.5% per annum for subsequent years. No repayments will be due during the first 12 months. A new ‘Pay as You Grow’ flexible repayment system will provide flexibility for firms repaying a Bounce Back Loan. This includes extending the length of the loan from six years to ten, which will cut monthly repayments by nearly half. Interest-only periods of up to six months and payment holidays will also be available to businesses. NEW: BBLS is now open for applications until 31 January 2021. The BBLS rules have also been amended to allow those businesses who have borrowed less than their maximum (i.e. less than 25% of their turnover) to top-up their existing loan.
Coronavirus Business Interruption Loan Scheme (CBILS) - This scheme delivered by the British Business Bank, will enable small and medium sized businesses to apply for a loan, up to £5m, with the government providing a guarantee of 80% on each loan and with no interest due for the first twelve months. Personal guarantees of any form cannot be taken under the scheme for any facilities below £250k. CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities. The scheme will be delivered through commercial lenders. CBILS lenders can extend the term of a loan up to ten years, providing additional flexibility for businesses who may otherwise be unable to repay their loans. NEW: CBILS is now open for applications until 31st January 2021.
Coronavirus Large Business Interruption Loan Scheme (CLBILS) -Government will provide a guarantee of 80% to enable banks to make loans to firms with turnover of more than £45 million of up to £200 million. Companies borrowing more than £50m through CLBILS will be subject to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan. The maximum size for invoice finance and asset finance facilities under the scheme is £50m. Facilities will be available from 3 months up to 3 years and will be offered at commercial rates of interest. The scheme will be delivered through commercial lenders. NEW: CLBILS is now open for applications until 31 January 2021.
Future fund - a new Future Fund to support the UK’s innovative businesses currently affected by Coronavirus. These businesses have been unable to access other government business support programmes, such as CBILS, because they are either pre-revenue or pre-profit and typically rely on equity investment. The scheme will deliver an initial commitment of £250m of new government funding which will be unlocked by private investment on a match funded basis. NEW: The scheme is now open for applications until 31 January 2021.
Local Restrictions Support Grant (Closed) - Businesses required to close in England due to local or national restrictions (including non-essential retail, leisure, personal care, sports facilities and hospitality businesses) will be eligible to receive the following:
- For properties with a rateable value of £15,000 or under, grant of £1,334 per 28-day qualifying restriction period.
- For properties with a rateable value over £15,000 and below £51,000, grant of £2,000 per 28-day qualifying restriction period.
- For properties with a rateable value of exactly £51,000 and over, grant of £3,000 per 28-day qualifying restriction period.
Local Restrictions Support Grants (open) - UK government are providing additional funding to allow Local Authorities (LAs) for in high-alert level areas which are not legally closed, but which are severely impacted by the restrictions on socialising. The funding LAs will receive will be based on the number of hospitality, hotel, B&B, and leisure businesses in their area.
LAs will receive a funding amount that will be the equivalent of:
- For properties with a rateable value of £15,000 or under, grants of £934 per month.
- For properties with a rateable value over £15,000 and below £51,000, grants of £1,400 per month.
- For properties with a rateable value of exactly £51,000 and over, grants of £2,100 per month.
With national ‘lockdown’ restrictions being imposed, the Local Restrictions Support Grant (Open) currently ceases to apply, as relevant businesses will receive funding from the Local Restrictions Support Grant (Closed). However, businesses who have who have already been subject to enhanced restrictions (Local Covid Alert Levels ‘High’ and ‘Very High’) will still the receive the grants backdated up to August 2020 if they’ve been operating with enhanced restrictions since then.
Additional Restrictions Grant - local authorities in England will receive one off funding of £1.1 billion to support businesses more broadly over the coming months which they can use this at their discretion. This will be distributed to local authorities on the basis of £20 per head of population.