The furlough scheme has been extended until October, however from August employers must pay National Insurance and pension contributions, then 10% of pay from September, rising to 20% in October.
The new 100% government backed loan scheme for small business announced.
Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders as announced on 27 April 2020.
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.
- Loans of between £2,000 and £50,000
- Loan terms will be up to 6 years
- No fees or interest to pay for the first 12 months
- No loan repayments will be due during the first 12 months
You can apply for a loan if your business:
- is based in the UK
- has been negatively affected by coronavirus
- was not an ‘undertaking in difficulty’ on 31 December 2019
The following businesses are not eligible to apply:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
- have already applied with CBILS
The Bounce-Back 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.
The scheme will launch for applications on Monday 4 May. The scheme will be delivered through a network of accredited lenders, such as your bank.
The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.