- On Monday 27 April, the Government announced a new set of loans aimed at small businesses, worth up to £50,000 or 25% of turnover. The loans are 100% state-backed (ie, funded by the taxpayer), and can be used for cash flow issues. No fees or interest is charged in the first 12 months, while the loans can last up to six years. Sole traders and limited company directors are among those who can apply.
To be eligible, your company needs to be based in the UK, have been negatively affected by coronavirus, and not to have been in financial distress on 31 December 2019. Applications open on Monday (4 May), where you’ll need to complete a short online form, although you won’t have to prove the future viability of the business. For more information go to the Gov website.
- Alternatively, you can apply for a business interruption loan. The temporary Coronavirus Business Interruption Loan Scheme is open to self-employed people and offers access to loans, overdrafts, invoice finance and asset finance of up to £5 million for up to six years. The Government could also give you a Business Interruption Payment to cover the first 12 months of interest and fees on the loan.
The scheme is now open for applications, and is offered by all major banks. Read more on the Government’s Business Support website. The two loan schemes will run alongside each other. - You can defer your income tax payments. If you have income tax payments due in July 2020 under the self-assessment system, you can defer them until January 2021. See self-assessment tax payments delayed.
If neither of these apply to you, check if you can claim benefits towards housing and other costs.