Deadline for Covid-19 Business Funding fast approaches

If your business has been financially affected by the pandemic, you might be eligible for government funding.

For many (if not all) businesses, these past 9 months have tested their endurance and
ability to adapt. For business owners and employees, their finance has changed
dramatically and without support from the government’s furlough scheme,
redundancy could well have been a reality. In the Spring significant funding support
for businesses was announced including the Coronavirus Business Interruption Loan
Scheme (CBILS), Bounce Back Loan Scheme (BBLS) and Self-Employed Income
Support Scheme (SEISS). If you haven’t already applied, the deadlines are fast
approaching!
According to HM Treasury* over 1.5 million businesses applied for the BBLS and
CBILS with nearly £50 billion paid out in loans. Now’s the time to claim support for
your business.

CBILS – Coronavirus Business Interruption Loan Scheme
Deadline: 30 th September 2020
This funding scheme provides financial support to smaller businesses affected by
Covid-19. The package helps businesses to access loans and other kinds of finance up
to £5 million. The government guarantees 80% of the finance to the lender and pays
interest and any fees for the first 12 months.
To apply, your business must be UK based with an annual turnover of less than £45
million and must prove that it was adversely affected by the pandemic and able to
operate normally. The loan duration can be from 3-6 years depending on the type of
finance you require. For more guidance on this scheme see the government’s website
here (LINK: https://www.gov.uk/guidance/apply-for-the-coronavirus-business-
interruption-loan-scheme). We would advise applying sooner rather than later as we
expect applications will be high this month. There are just two weeks remaining!

SEISS – Self-employed Income Support Scheme
Deadline: 19 th October 2020
Launched a few months ago, the Self-Employment Income Support Scheme began
accepting applications for its second phase grant funding last month. Self-employed
workers have until 19th Oc‌to‌be‌r to claim their second and final SEISS grant.
If you applied for the first grant, the eligibility criteria for the second grant is the
same, and if you were eligible for the first grant, you will be eligible a second time.
This is provided that your business has still been adversely affected by Coronavirus at
any time since 14th July.

The second and final taxable grant is worth 70% of your average monthly trading
profits, paid out in a single instalment covering 3 months’ worth of profits, and
capped at £6,570 in total. To apply for the first time, you must have:
 Traded in the tax year 2018 to 2019 and submitted your Self-Assessment tax
return on or before 23rd April 2020 for that year.
 Traded in the tax year 2019 to 2020
 Intend to continue to trade in the tax year 2020 to 2021

For more information on applying for the Self-Employed Income Support Scheme,
visit the government’s website here (LINK: https://www.gov.uk/guidance/claim-a-
grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme).

BBLS – Bounce Back Loan Scheme
Deadline: 4 th November 2020
If you need urgent finance, BBLS funding offers support to smaller businesses more
quickly. The scheme helps SME’s borrow between £2,000 and up to 25% of their
turnover. The maximum loan available is £50,000. The government guarantees
100% of the loan and there won’t be any fees or interest to pay for the first 12
months. After 12 months the interest rate will be 2.5% a year.
To apply, you must be a UK based business, established before 1 st March 2020 and
able to prove that your business has been adversely affected by the Coronavirus.
There are some industry exceptions to those that can apply, for example, banks and
public bodies, but most businesses are able to seek support. For more information on
the BBLS see the government’s information here (LINK:
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan).

A reminder that the furlough scheme also ends on 31 st October. Businesses can
however take advantage of a £1,000 Jobs Retention Bonus for each furloughed
employee that is rehired and employed continuously through to 31 st January 2021.
To qualify for this, each employee must be paid at least £520 per month on
average.

Harold Duckworth & Co. are here to help. If you need any advice on any of the above
schemes please contact us on 01752 665134 or email us at
info@haroldduckworth.co.uk.

Our expert team can provide a range of accountancy
services including bookkeeping, payroll, tax returns and company audits.
* Figures reported by HM Treasury on 17 th August 2020.

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