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Essentially Catering Magazine - April 2020

        COVID-19 Funding Guide

        While we are hearing almost daily of funding schemes that are being made available to us as a result of the devastation
        COVID-19 is causing to our lives, it can be hard to know who is eligible for what. Gary Hemming, Commercial Lending
        Director, ABC Finance, explains what support is available and how to access it

        Government grants and support

        Small Business Grant Scheme
        Launched by the Government, this scheme entitles small businesses to a grant of £10,000. To qualify, you must be
        eligible for small business rate relief, rural rate relief or tapered relief. This means businesses with a rateable value of
        £15,000 or less.
          The grant is being issued through local authorities and will be issued automatically. The local authorities will be
        providing further information shortly, although it is expected that they will write to businesses in early April.
          You can find contact details for your local council through the government’s website.
        Grants for larger businesses
        For businesses in the retail, hospitality
        and leisure industries, with a rateable
        value between £15,001 and £51,000,
        a larger grant of £25,000 will be
        issued. Again, as with the small
        business grant scheme, the local
        authority will be in touch soon with
        further information.
          If you require funding for more
        than £25,000 or you can’t wait for
        these grants, you may consider the
        other options available to allow you   VAT and Income Tax Payments      Secured business loans
        to borrow money. These options are   VAT payments have been deferred    These loans allow the lender to take
        detailed below.                     from 20 March until 30 June. All    security over property, usually either
        Job Retention Scheme                businesses are eligible for this    your home, your business premises
                                            scheme. This scheme is offered
                                                                                or an investment property. This
        As a measure to protect the cash    automatically. No applications are   reduces the chances of the lender
        flow of businesses and the jobs of   required. VAT refunds and reclaims   losing money in the event of default,
        employees, the Government has       will still be handled as normal.    meaning they may offer more relaxed
        launched the Coronavirus Job                                            lending criteria and lower rates.
        Retention Scheme. This scheme
        allows employers to assign some     Borrowing money                     Business revolving credit facilities
        staff as ‘furloughed workers’, meaning                                  Revolving credit facilities can be
        they are given a temporary leave    Unsecured business loans            arranged in two to three days and
        of absence from work due to         Business loans are available from   allow you to borrow and repay funds
        coronavirus.                        £3000 over terms between six to     as needed on agreed terms. The most
          The scheme reimburses employers   60 months. Funds can usually be in   common of these facilities
        for 80% of their workers’ pay.      your account in five to seven days.  is the overdraft, although there
        Employers can choose to top up the    The Government has also           are now several lenders offering
        20%, but this is not mandatory.     announced the Coronavirus           standalone facilities.
        The scheme can be backdated to      Business Interruption Loan             Some revolving credit facilities
        1 March 2020.                       Scheme, which allows borrowing      fall under the Coronavirus Business
          All UK businesses are eligible    up to £5 million. For eligible loans,   Interruption Loan Scheme and
        for the scheme. The scheme will be   the Government will cover the first   will qualify for 12 months’ interest-
        managed through an HMRC portal,     12 months’ interest on the loan. The   free borrowing.
        which has not yet been built. HMRC   Government also guarantees 80%        For further information, and to learn
        has confirmed that it is working    of these loans, meaning lenders     about other options, such as bridging
        urgently to get the system up and   are more likely to support higher-   loans and commercial mortgages,
        running as soon as possible.        risk transactions.                  click here.

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