Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor announced today (Monday 27 April).
Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.
The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days, and comes alongside the £6 billion awarded in business grants, supporting 4 million jobs through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms.
The government, which has been consulting extensively with business representatives about the design of the new scheme, will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
The loans will be easy to apply for through a short, standardised online application. The loan should reach businesses within days- providing immediate support to those that need it as easily as possible.
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The date the money will be taken from your account is Wednesday 13 May 2020.
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There’s now updated guidance on how to calculate your claim and a simple step-by-step guide.
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General information about the scheme
• To be eligible for CJRS an employer must agree with the employee that they are
a ‘furloughed worker’.
• Employees must be notified that they have been furloughed.
• Employees must be furloughed for a minimum of three weeks.
• The employee cannot do any work for the employer that has furloughed them.
• You can claim 80% of wages up to a maximum of £2,500 per month per furloughed employee.
• A separate claim is needed for each PAYE scheme.
• You can only claim for furloughed employees that were on your PAYE payroll on or before
19 March 2020.
• An RTI submission notifying payment in respect of that employee to HMRC must have been
made on or before 19 March 2020.
• You must have a UK bank account.
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Charities across the UK will receive a £750 million package of support to ensure they can continue their vital work during the coronavirus outbreak, tens of thousands of charities will benefit from direct cash grants to ensure they can meet increased demand as a result of the virus as well as continuing their day-to-day activities supporting those in need.
- £750 million available for frontline charities across the UK – including hospices and those supporting domestic abuse victims
- £360 million direct from government departments and £370 million for smaller charities, including through a grant to the National Lottery Community Fund
- government will match donations to the National Emergencies Trust as part of the BBC’s Big Night In fundraiser later this month – pledging a minimum of £20 million
As part of a UK-wide package of support, £360 million will be directly allocated by government departments to charities providing key services and supporting vulnerable people during the crisis.
Charities providing vital services and helping vulnerable people through the current crisis will benefit from the £360 million allocated by government departments. These will include:
- hospices to help increase capacity and give stability to the sector
- St Johns Ambulance to support the NHS Victims charities, including domestic abuse, to help with potential increase in demand for charities providing these services
- vulnerable children charities, so they can continue delivering services on behalf of local authorities
- Citizens Advice to increase the number of staff providing advice during this difficult time
£370 million will be allocated for small and medium-sized charities, including through a grant to the National Lottery Community Fund for those in England, will support those organisations at the heart of local communities which are making a big difference during the outbreak, including those delivering food, essential medicines and providing financial advice.
The Chancellor also announced the Government will match fund whatever the public decides to donate to the BBC’s Big Night In charity appeal on 23 April, starting with a contribution of at least £20 million to the National Emergencies Trust appeal.
Departments will now work to identify priority recipients, with the aim for charities to receive money in the coming weeks. The application system for the National Lottery Community Fund grant pot is expected to be operational within a similar period.
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