The first budget of a new decade, a new government and a new chancellor could not have been delivered in more uncertain and challenging times
As part of measures announced by Rishi Sunak, was support for British businesses impacted by Covid-19.
- Underwriting 80% of £1 billion of loan financing for businesses with a turnover of less than £41 million, through the British Business Bank. Please note, you will still need a well thought out borrowing proposal. This is where you will need to spend some time putting together an action plan that has a reasonable chance of success and that highlights there is a robust underlying business.
- For businesses with under 250 employees, covering the cost in full of 2 weeks of statutory sick pay per employee.
- A dedicated HMRC helpline (0800 0159 559) to help businesses and individuals in financial distress with their tax payments.
- Cash grants of up to £3,000 to support the smallest business (administered by your local authority).
Whilst the above are very welcome initiatives, most are still a work in progress and so more details will follow as we get them.
The government has indicated that it will continue to provide additional support as required to minimise the impact of the Pandemic, so we can expect further initiatives to be forthcoming in the near term. This is such a fast-moving event that the banks have not yet put in the necessary processes to deliver the new funding. It will require a ‘speedy response’, likely to be delivered through a ‘Enterprise Finance Guarantee’ style process.
In addition to the support being provided by government, the private sector lending remains open for business. We have spoken to several financiers over the last few days to understand their position on lending in the current environment. The message is clear. As always, there needs to be a demonstrably strong underlying business that except for current environment, would otherwise be in a very different position.
We at Roffe Swayne and RS Corporate Finance stand ready to help our clients through the coming period of uncertainty. If you are unsure of what options are available, please do have a chat with us. The earlier the better, as being better prepared often provides for greater optionality.