Government unveils coronavirus business aid

Aaron Morby 2 years ago
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The government has unveiled a massive support package to provide a funding bridge to shore-up firms stricken by the impact of coronavirus.

Rishi Sunak sets out loan lifelines for small and large companies
Rishi Sunak sets out loan lifelines for small and large companies

But specific support for the construction sector has yet to be mapped out with much of the £330bn package targeted more towards the high street and retail business sectors.

Unveiling the unprecedented support package Chancellor Rishi Sunak said: “Never in peacetime have we faced an economic fight like this one.

“We will do whatever it takes to protect our people and businesses from the effects of this global economic emergency brought on by the Coronavirus pandemic.”

Covid-19 Corporate Financing Facility

To support liquidity among large firms, a major new scheme will be launched by the Bank of England to help them bridge Coronavirus disruption to their cash flows through big loans.

This will be released to companies seen as fundamentally strong, but have been affected by a short-term funding squeeze.

It will help support firms paying salaries, rents and suppliers, even while experiencing severe disruption to cashflows.

Coronavirus Business Interruption Loan Scheme
A new temporary Coronavirus Business Interruption Loan Scheme for smaller businesses will launch in a matter of weeks to support businesses to access bank lending and overdrafts.

The British Business Bank will provide loans up to £5m in value, interest-free for six months, supported by an 80% Government guarantee.

Support for businesses paying tax

All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.

These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

Those concern about the inability to pay their tax due to COVID-19, can call HMRC’s dedicated helpline on 0800 0159 559.

Support for businesses paying sick pay to employees

The Government confirmed legislation to allow small- and medium-sized businesses and employers to reclaim statutory sick pay due to COVID-19.

The refund will cover up to 2 weeks’ SSP per eligible employee, who has been off work because of the infection.

Employers with fewer than 250 staff will be eligible. They will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19

Employers are expected to maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note.

The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible

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