Support for small businesses and self-employed
While there is a wide range of Government funding available in this difficult time, we are hearing that many small businesses and self-employed people aren’t eligible for the main grants and schemes that are on offer. Of course, deferred tax and VAT are helpful, but they are unlikely to be enough on their own.
In this situation, it can be tempting to think about giving up a vehicle to cut your costs. However, even if this is possible, it is a big (and, potentially, risky) step. You may be able to cope without your car or van right now, but when things pick back up again, it will mean you are on the back foot, while your competitors will be ready to start work straight away.
Coronavirus Business Interruption Loan Scheme
This is why we wanted to highlight a Government scheme that may be able to give you a better way to keep your business afloat. It’s called the Coronavirus Business Interruption Loan Scheme and it is open to small and medium-sized businesses, including sole traders, who mainly operate in the UK and have turnover of up to £45 million a year.
You can receive up to £5 million in loans, overdrafts, invoice finance and asset finance for up to six years. On top of that, the Government will cover the first 12 months of interest payments and any fees from your lenders, so there are no upfront costs and the initial repayments will be lower.
You can be in any sector, apart from banks, building societies, insurers, reinsurers and public-sector organisations. The only other requirement is that you must have a borrowing proposal that would be considered viable if it weren’t for the pandemic and will allow you to get through any short-term to medium-term challenges.
Find out more
You may also be interested in…
The Government has recently announced a new loan scheme for small businesses that will be available from 4 May. It is called the ‘Bounce Back Loans scheme’ and offers quick access to a loan of between £2,000 and £50,000. Find out more in our guide Government support for businesses and the self employed