The Government unveiled a £350 bn bailout plan for business, but how do we access this?
The support plan is expected to be in effect over the next week with some of the following guidelines;
Early next week local authorities should receive information on the exact types of businesses and conditions upon which 100% business rates will be offered over 2020/2021
This is to apply only to certain types of business and each local authority will adopt and publish its own scheme with central Government reimbursing
Some LA’s have said e.g Hammersmith and Fulham that this will be automatically applied to those who are already eligible for small business rates relief and others have indicated that it is advisable to send an email in with your need and how the Covid19 pandemic has effected your business
This raises the question are you already applying for small business rates relief which could entitle you to over 33% off your rates bill?
Did you also know that by talking to your LA you could set-up payment terms/ delay payments/ reduce/ spread these?
As for the business interruption loans firms in the hospitality sector with a rateable value of less than £51,000 will be given cash grants worth up to £25,000. Another 700,000 small firms across the economy will get grants worth £10,000 each to help tide them over. These are not yet available, banks say they are awaiting further information and expect this to be released towards the first week of April
However, those with existing facilities are being offered repayment holidays and 0% interest and this is available immediately in most cases
This is becoming more widely available with companies from Treatwell to Deliveroo in the hospitality sector awarding 0% fees and weekly payments and furthermore payment providers from Square offering 0% processing fees and other opportunities to sell with 0% fees or rentals.
If you have a finance facility in place with anyone now is the time to pick up the phone (you will be holding in long queues but it’s worth the conversation almost all are offering confirmed 0% and repayment holidays)
It’s also important to give a quick call to your landlords if you’re paying rent - they will have been given these repayment holidays and so should pass these on to you - ask them to give you 3-6 months, be bold and ask for the maximum. You could go further and ask them to extend the discount until any lockdown is ended so it is linked to the lockdown in the instance it is longer than we expect or hope!
Additional grants will be made available and your local authority is the best contact for this
Any additional interest/ fees you’re paying on any facilities - a reminder all should be at 0% and nil charges so get in touch with everyone and ASAP to save you the fees!
For Corporates
HM Treasury and the Bank of England announced a Covid Corporate Financing Facility (CCFF) which will support companies that are fundamentally strong, but have been effected by a short-term funding squeeze. This will act a as a vehicle to support corporates who would ordinarily seek market-based finance for their working capital, but find themselves unable to access financial markets in this uncertain operating environment. This facility will primarily provide bridging support to see through the temporary nature of Covid19 related disruption. It will have the ability to offer unlimited financing to eligible companies over the coming year. Governments will indemnify the Bank’s operations under this facility.
Note that some of the details maybe hard to navigate and if you’re not confident about best managing this yourself you can get in touch with our team and one of our advisors will be happy to look to support you.