Chancellor Rishi Sunak cancelled the winter budget to pave way for emergency measures as the UK battles another wave of COVID infections. With government support schemes CBILS, BBLS and Future Fund coming to end in September and furlough scheme in October, he laid out plans to extend the support.
CBILS and BBLS extension
Coronavirus Business Interruption Scheme has been extended till 30th November 2020 and lenders have till end of December to approve the applications.
Decimal Factor has witnessed a multifold increase in applications and approvals
“Pay As You Grow Scheme”
Loans can be repaid over ten years if the businesses are in difficulty without any impact on the credit score.
New Job Support Scheme
Government will pay for one third of lost hours for employees who work at least one third of their usual hours. Grant is capped at £697.92 per month and is valid for 6 months starting Nov 2020. Employers will cover the worked hours and one third of lost hours. Scheme is targeted mainly at SMEs. Larger businesses can apply if their turnover has witnessed fall during COVID.
New Business Support Scheme
Cut in VAT from 20% to 5% for hospitality and tourism businesses has been extended until March 2021