Updated: 9 November 2020
With the announcement that England would be going into another national lockdown starting from 5th November 2020, the Chancellor has unveiled further support to help businesses and their employees. Here, we take a look at the latest support provided, and how you can apply.
The second lockdown in England will last until 2nd December 2020, and the bill will expire on that date. MPs will then be able to hold another vote on whether to extend the lockdown.
There are a variety of new rules coming into force during this lockdown. For instance, you can only leave your home for the specific reasons listed below:
In addition, the following rules apply:
Mixing of households
Under the new rules, a number of businesses will have to close during lockdown. These include:
Though a number of businesses have to close, there are a number of businesses that can remain open during the lockdown. These include:
The Jobs Retention Scheme (also known as the furlough scheme) has been extended to 31st March 2021. Temporarily laid-off workers on the scheme will receive 80% of their usual wages, paid for by the Government. The maximum payment available is £2,500 per employee per month and employers are expected to pay their employees’ national insurance and pension contributions.
It also allows employees to work reduced hours, for which they are paid as normal. The Government subsidy then covers the hours not worked.
To continue to offer support to businesses throughout the second lockdown, the Coronavirus Business Interruption Loan Scheme (CBILS) has now been extended. The new deadline for applications is 31st January 2021. To learn more about the extension, click here.
You can apply for a CBILS loan here.
Like the Government CBILS loan scheme, the Bounce Back Loan Scheme (BBLS) has also been extended. It will now close for applications on 31st January 2021. In addition, businesses eligible for BBLS loans will be able to top their loan up if they have not yet claimed the maximum available to them (25% of their annual turnover).
If you’re an existing customer of Funding Circle, you can apply for a BBLS loan or a top up by signing into your account.
To bolster the support available for the self-employed, the Self-Employed Income Support Grant (SEISS) has been topped up. Self-employed professionals will now be able to claim 80% of their average monthly trading profits for November, while support for December and January will be 40% of their average monthly trading profits. The payment for these three months will form one single grant that will be equivalent to 55% of trading profits for the whole period, and capped at £7,500.
HMRC will provide full details regarding claiming and applying in due course.
The Financial Conduct Authority (FCA) has announced plans to enable more people to be able to apply for mortgage payment holidays, up to a maximum of six months. Those who have already benefited from a six-month deferral are advised to speak to their lender to agree more tailored support. In addition, the FCA has also proposed that no one should have their home repossessed until after 31st January 2021.
Borrowers will also be able to apply for payment holidays on credit cards, car finance and personal loans. Those who have already had a payment holiday can now apply for a second deferral.
We understand that recent developments will present fresh challenges to many businesses. As always, we are here to support you and all our small business customers as best we can, so if you have concerns about your loan or would like other information please get in touch.
It’s important to remember that when taking a loan your business is liable for the full loan amount. The CBIL and BBL schemes provide a guarantee to the lender, not to the business.
All information is correct at time of publishing. While we want to help as much as we can, the information and documents found here are provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here.If you have any questions, please speak to your professional adviser or seek independent legal advice.
CBILS and BBLS are managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. They are not authorised or regulated by the PRA or the FCA. Visit british-business-bank.co.uk.