18th March 2020
Tuesday’s announcement was described by Risi Sunak as a “comprehensive, coordinated and coherent response to what is a serious and evolving economic situation. These are only the first steps.”
The loans, made on “attractive” but unspecified terms, would allow businesses to continue to carry out fundamental day-to-day tasks such as paying for wages, rent, and stock. The money, available from the start of next week, will be offered via the Bank of England for bigger firms, while smaller enterprises can seek Coronavirus Business Interruption Loans of up to £5m each, the first six months will be interest free. Loans will be delivered through accredited lenders.
Swoop has already received a number of questions via our hotline asking for further details on this £350bn+ of Government-backed support for UK businesses impacted by Coronavirus.
So, to confirm, the highlights are:
Total package of £350bn
- £2bn to smaller businesses and households
- Up to £5m loans for smaller enterprises delivered through accredited lenders under the Coronavirus Business Interruption Loan Scheme
- Cash grants worth £25,000 to be made to retail, leisure and hospitality firms to help them bridge the period of turbulence
- The smallest businesses in the country across all sectors of the economy will be able to seek grants worth £10,000
- Business rates paid on commercial properties will be scrapped this year for all companies in the retail, leisure and hospitality sectors.
This is a substantial package. Details on accessing this support are still to be defined, however, we’re expecting some clarity over the next few days. What we know for sure is that loans of up to £5m for working capital will be made to smaller enterprises via accredited lenders under the Coronavirus Business Interruption Loan Scheme.
This provides some much needed assurance for businesses and will help to buoy them through turbulent times.
Here at Swoop we have a team dedicated to constantly monitoring and reviewing the support available. As soon as funds become accessible we will update businesses immediately and work together to review eligibility.
While we’re awaiting further clarity on accessing the new funds, there are a number of things Swoop can do to help you to navigate the best route for your business in the short term:
- Get registered on the Swoop website, its free and you can securely link up your accountancy software and bank account to get your data working for you
- Once you’ve registered on Swoop we’ll get in contact to see how we can help you in the short term – please be assured there’s absolutely no cost
- We will keep you updated on the initiatives that have been announced and all future developments
- We can help you review your existing bank facilities to make sure you’re getting the best deal – we work with all the main banks
- We’re working alongside the funders providing the Government-backed support – as soon their terms are finalised we can assess your eligibility
- Many funders also have their own support in place, and we’ll be able to match you to those most appropriate for your needs
- Now is the time to look at what savings can be made – Swoop can assess potential savings which can be made immediately
Swoop is closely monitoring when and how the money will start to flow to businesses. We are working with the funding providers ensuring we’re in the best position to support our customers as soon as the funds become available.
Coronavirus hotline: 0203 868 0364