Covid-19 grants and loans for businesses and the self employed
Recovery Loan Scheme
The Recovery Loan Scheme supports access to finance for UK businesses as they grow and recover from the disruption of the Covid-19 pandemic
The scheme is to help businesses of any size access loans and other kinds of finance so they can recover after the pandemic and transition period. Up to £10 is available per business. The actual amount offered and the terms are at the discretion of the participating lenders.
The government guarantees 80% of the finance to the lender. As the borrower you are always 100% liable for the debt. The scheme is open until 31 December 2021, subject to review.
You can apply for a loan if your business is trading in the UK. You will need to show that your business would be viable were it not for the pandemic, has been adversely impacted by the pandemic and is not in collective insolvency proceedings (unless your business is in scope of the North Ireland Protocol in which case different eligibility rules may apply).
Businesses that received support under the earlier Covid-19 guaranteed loan schemes are still eligible to access finance under this scheme if they meet all other eligibility criteria.
Coronavirus business interruption loan scheme (CBILS)
The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller business affected by coronavirus (COVID-19).
Scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million.
Government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
Scheme is open until 31 March 2021.
Eligible to apply if business is UK based and has annual turnover of up to £45 million.
If you wish to borrow £30,000 or more you also need to confirm that your business wasn't classed as a business in difficulty on 31 December 2019.
Maximum length of facility depends on type of finance applied for and will be up to three years for overdrafts and invoice finance facilities and up to six years for loans and asset finance facilities.
117 lenders are participating in the scheme including all the main retain banks.
If you're self employed or a member of a partnership and have been impacted by coronavirus (COVID-19) you may be eligible to use this scheme to claim a grant.
The Self-Employed Income Support Scheme (SEISS) has been extended. If you were not eligible for the first and second grant based on the information in your Self Assessment tax returns you will not be eligible for the third.
The online service to claim the third grant is open - if you're eligible you must make your claim for the third grant on or before 29 January 2021.
You cannot claim the grant if you trade through a limited company or a trust.
Government will pay self-employed people adversely affected by Coronavirus a third taxable grant worth 80% of their average monthly profits.
Those eligible will be paid out in a single instalment covering 3 months worth of profits and capped at £7,500 in total.
If you cannot maintain your workforce because your operations have been affected by coronavirus (COVID-19) you can furlough employees and apply for a grant to cover a portion of their usual monthly wage costs where you record them as being on furlough.
Claims for furlough days in May 2021 must be made by 14 June 2021.
Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities.
The Coronavirus Job Retention Scheme has been extended until 30 April 2021. You can claim 80% of an employee's usual salary for hours not worked, up to a maximum of £2,500 per month.
Find out if you are eligible and how much you can claim to cover wages for employees on temporary leave ('furlough') due to coronavirus (COVID-19).
Local Restrictions Support Grant (Sector) available from local councils if business is a nightclub, adult entertainment or dance hall that has been closed by law since 16 March 2020 because of national coronavirus restrictions.
The Additional Restrictions Grant (ARG) provides local councils with grant funding to support closed businesses that do not directly pay business rates as well as businesses that do not have to close but which are impacted. In addition, larger grants can be given than those made through LRSG (Closed). Local councils can determine which businesses to target and the amount of funding from ARG. More information available at www.gov.uk