Inca COVID-19 Update: Two New Loan Schemes & Other Business Support News
29th April 2020
Welcome to our latest COVID-19 update.
Two New Loan Schemes Announced
The government has announced two new loan schemes to help businesses affected by the coronavirus. The Future Fund and the Bounce Back Loan are in addition to the Business Interruption Loan Scheme and are due to come into effect in May.
1. Future Fund
The future fund will provide matched loan funding from £125K up to £5M in the form of convertible loans. It may suit businesses that rely on equity investment and are not eligible for the Coronavirus Business Interruption Loan Scheme (CBILS).
To be eligible, businesses must:
- Be based in the UK
- Attract the equivalent match funding from third-party private investors & institutions
- Have raised at least £250K in equity investment in the last five years
You can find more information at: https://www.gov.uk/guidance/future-fund
2. Bounce Back Loan
The Bounce Back Loan is a new fast-track finance scheme for small businesses. You can borrow between £2K and £50K and access the cash within days. Terms can be for up to 6 years, and there are no fees, repayments or interest for 12 months. The government will guarantee 100% of the loan.
Note: You cannot apply if you’re already claiming under CBILS, but if you’ve already received a loan of up to £50K under CBILS, you can transfer it into the Bounce Back Loan scheme until 4th November 2020.
You can find more information at: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Support from Business Organisations & Trade Associations
Many Business Representative Organisations and Trade Associations are providing coronavirus related support for specific sectors. In some instances, you don’t need to be a member to access help and advice.
You can find more information at:https://www.gov.uk/guidance/coronavirus-support-from-business-representative-organisations-and-trade-associations
Self-Employment Income Support Scheme
We now have a little more detail on the Self-Employment Income Support Scheme.
- HMRC expects to contact taxpayers in mid-May and make payments in early June
- The amount paid will cover an initial three-month period – currently less than that for furloughed employees – and will be based on average annual profits for 2016-17, 2017-18 and 2018-19
- If you were not self-employed in 2016-17, then 2017-18 and 2018-19 will be used
- If you were not self-employed in 2017-18, then only 2018-19 figures will be used, even if you were self-employed in 2016-17
- Amended 2018-19 tax returns sent to HMRC after 26th March 2020 won’t be taken into account
You can find more information at: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme#lessyears
Job Retention Scheme Extended
And finally – the Job Retention Scheme has now been extended until the end of June 2020.
Remember, we’re here to help you and your business get through the current crisis in any way we can. If you have a question or need advice, do give us a call. And we’re here for you even if you don’t have an accounts-related query but just want a friendly chat to keep yourself from going stir-crazy!
We hope you find this information useful. Please feel free to share it with other business owners in your contact sphere.
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