The previous year had been very tough in business when people were not allowed to go out of their homes for work. This year is much challenging because the company can see the disruptions caused by the pandemic. COVID-19 not only affected the business persons but the customers as well.
Pandemic effectively reduced the success rate of many businesses not prepared for any stress. It resulted in mass reduction, bankruptcy and shifted the company from ground level to online. Whenever a state is in a problem, it’s the government’s responsibility to facilitate it in every way. Keeping in view the pandemic, the government offered many schemes to stabilize the working rhythm!
“Pandemic effectively reduced the success rate of many businesses not prepared for any stress.”
These schemes are many, but their sole purpose is to help the people in one way or another. So before entertaining yourself with different techniques, make sure that you are adopting the right one because the essential purpose is to help the businesspersons, not to take advantage of them.
The important scheme among all is Recovery Loan Scheme- RLS, where lenders first serve the businesspersons through the most suitable and affordable strategies and plans. You might need to show something as evidence to prove your eligibility for the Recovery Loan Scheme. Key factors of this scheme include
- Maximum limit up to £10 million
- The duration of loans up to six years.
- Business should be running in the UK
- No turnover restrictions are required.
So, if you are worried about the declining structure of your business plans, look at this scheme. Recovery Loan Scheme will definitely help you throughout your business journey.
Coronavirus Business Interruption Loan Scheme –CBILS is a scheme very similar to RLS. It again deals with lenders and businesspersons helping them to recover from distortions caused by the pandemic. The business persons might need to show a plan to the lenders that how they will deal their business plans during pandemic and how they will cover the loan facility once the pandemic has passed. Key features of this scheme include
- Maximum loan limit up to £5 million
- The duration of loans up to six years
- Business should be running in the UK
- An annual turnover of £45 million is required.
- As a borrower, the business person will always be in debt
- The government provides complete security to the lenders against the outstanding facility balance.
“CBILS deals with lenders and businesspersons helping them to recover from distortions caused by pandemic.”
So, if your business demand is up to £ 5million, you can surely go for this scheme. Coronavirus Business Interruption Loan Scheme will help your business flourish in every possible way by breaking the hurdles created by deathly pandemic.
Coronavirus Job Retention Scheme –CJRS is specifically for the employees who could not work during the pandemic. It’s a scheme that helps employees by paying them for the days not operated in actuality. Of course, the employees will be paying back the grants in reduced pay once they are on track again. The offerings are 80% now, but it is soon expected to be declined to 70% only.
Key Features of this scheme are as follows
- 80% grant will be provided to the employees
- Employees who are on their company Payroll before 28th Feb 2021 can claim it
- Claims must start and end in the same calendar month from 1st July
- Shares can be easily calculated through the CJRS calculator
So, if you are an employee and looking forward to claiming some grants, make a quick go-through across this scheme. Coronavirus Job Retention Scheme will not only help the employees to stabilize themselves but will also help the business throughout.
COVID Corporate Financing Facility –CCFF is a joint lending measure taken by HM Treasury and Bank of England. The ultimate purpose of CCFF is to maintain the cash flow and other financial issues of expanded business during the pandemic. The business persons entertaining themselves through this scheme have to buy a short-term debt in the shape of a commercial paper-CP.
Key Features include:
- The applicant must have made a material UK contribution
- The CCFF lends to the larger firms that are on investment-grade by purchasing CP
- Due to CCFF, more expanded space is given for the banks to maintain the cash flow of other businesses by lending to them.
- It complements other schemes as well, such as CLBILS and TFSME
If you are holding a large business and are in a position to face pandemic disruptions, go through the CCFF details and let the HM treasury help you! COVID Corporate Financing Faculty is all over there not only to help the small businesses but the larger industries too.
Bounce Back Loan Scheme- BBLS is a scheme launched by the government to adjust the constant working rate of the business. This scheme is specifically for the company that could get maintained with £50,000 or less finance. The maximum loan amount is £50,000. It again deals between accredited lenders and borrowers. The lenders provide a loan of £2,000 or 25% of business turnover for six years term. This scheme was applicable until last year, March, 31st 2021.
Key features of this scheme include:
- A maximum loan of £50,000.
- The loan time limit is up to six years.
- Borrowers are always liable to debt.
Bounce Bank Loan Scheme will let your business bloom by lending you money and abstaining the business from any strain caused by COVID
The government introduced many more methods to reduce the overall stress caused by the pandemic. Among other methods were different schemes, cash grants, low-interest loans, VAT payments, and much more. Unfortunately, some of these schemes are not accepting any new applications. Still, this thing should be kept in mind that they all were launched due to the prevailing lockdown situation throughout the region not letting people come out of their houses. So, the only way left was doing work online, which was not less than a hurdle.
With the cooperation of different banks throughout England, HM Treasury helped people by flourishing their business just like the way they bloomed before, not letting the deadly hurricane named COVID-19 destroy the beauty of the Business Garden! Even before, there are already rules established by HMRC to help many businesses to thrive in the market. And, there are many strategies advised by many experts that you can apply to your business in order to get the maximum tax benefits on paying Capital Gains Tax, managing Inheritance Tax, processing VAT and etc. If you want to know more. you can click this link to see the full list of the articles.