Updated guidance and support to help your business during Covid-19
A new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million, to help businesses of all sizes through the next stage of recovery.
The Job Support Scheme has also been expanded to protect jobs and support businesses required to close their doors as a result of coronavirus restrictions.
The Recovery Loan Scheme supports access to finance for businesses as they recover and grow following the pandemic.
The scheme will support borrowing of up to £10m for individual businesses and up to £30m across a group, and can be used for any legitimate business purpose, including managing cashflow, growth and investment. It is designed to appeal to businesses that can afford to take out additional finance for these purposes.
Check your eligibility for national and local grants here.
The British Business Bank has announced further details of Pay As You Grow, which helps UK smaller businesses that have taken out a Covid-19 emergency Bounce Back Loan to manage their cashflow and have a better chance of getting back to growth.
Pay As You Grow (PAYG) will enable businesses who have started repaying their Bounce Back Loans to:
• request an extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%
• reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan
• take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan
Borrowers can use these options individually or in combination with each other**, and remain responsible for repaying their Bounce Back Loan and fully liable for the debt.
Lenders will start to communicate Pay As You Grow (PAYG) options to Bounce Back Loan Scheme borrowers three months before repayments commence.
Lenders will inform their customers about PAYG directly, so borrowers should wait until they are contacted by their lender before enquiring about the scheme.
Lenders will advise customers about how their payment profiles may change according to their choices under the scheme. Businesses first began to receive BBLS loans in May 2020 and the first repayments will become due from May 2021 onwards.
UK Government Covid-19 recovery strategy
The UK Government’s COVID-19 recovery strategy has been published along with guidance to help employers, employees and the self-employed understand how to work safely during the coronavirus pandemic. You can read the recovery strategy on this webpage and find guidance via this link.
- Updated guidance from the government
- Support for businesses outside government
- Businesses affected by lockdown
- Export growth planning
The Department for Business, Energy & Industrial Strategy has updated the list of organisations that have produced additional resources that may be useful to employers and employees.
A new package of measures from the government includes additional funding to help businesses recover and grow from the impact of Coronavirus:
- Additional funding now available for small businesses in the South West of England.
- Funds build on recent measures following the sector bounce-back plans to help businesses recover from Coronavirus.
- Measures aim to support local jobs, growth and prosperity.
There are also 12 new International Trade Advisers to provide direct support to small businesses in the South West. And the UK Export Finance (UKEF), the government’s world-leading credit agency, can help businesses grow overseas trade and build back from the impact of coronavirus. UKEF is also expanding its network of regional Export Finance Managers to help local businesses secure the financing they need to trade internationally by appointing renewable energy specialists to put SMEs at the heart of the global transition to clean energy.
A pilot Export Academy scheme has been introduced to support smaller businesses to begin their exporting journey. The Export Academy will deliver a series of activities that will build the capabilities of smaller businesses, creating a new cohort of confident businesses ready to trade. Sign up today.