Government Support for SMEs - Act now to get the support you need
The pandemic can be regarded as unprecedented as it seems to be a once in a 100-year event. However what is truly unprecedented is the amount of money the Government has thrown at the economic problems that flow from the pandemic and the lockdowns. The UK national debt is estimated to have increased by over £180bn just in the five months, March-August. This figure brought the cumulative total of the UK national debt to 100% of GDP.
This Government funding has substantially been deployed to assist business.
The Furlough Scheme is an excellent example of swift and decisive Government intervention which was easy to understand and easy to claim. Since April there have been several schemes assembled to support business. The Coronavirus Business Interruption Loan Scheme, commonly referred to CBILS, is the most recognisable. There are however others.
What are the Government funding schemes and how does one access them?
At James Stocks & Co we have created an easy to use table that includes all the business support schemes that are available along with the conditions attaching to each. So, in one place, businesses can see what is out there in terms of Government support.
James Stocks & Co has identified 11 support schemes for business that are currently in operation. These range from the Furlough Scheme through CBILS to the Kickstart Scheme.
Of all the support schemes in terms of number the Bounce-Back Scheme has proven to be the most popular with 1,660,845 approved applications. CBILS Scheme is the second most popular with 73,094 applications (figures as at 16th August).
Away from loans there are 3 schemes that ease the burden of the cost base for a business. The Furlough Scheme has been mentioned. In addition to encourage diligent self-isolation for the required period there is the Sick Pay Support Scheme. For businesses in England operating in the retail, pub restaurant and other hospitality sectors the Business Rate Support Scheme continues. For those qualifying there is full business rate deferral for the year 2020/2021.
Learning from experience after the 2008 financial crisis, where young people found it difficult to enter the job market as labour ceased to be mobile and job openings were blocked, the Government introduced the Kickstart Scheme. This scheme, subject to conditions around Universal Credit and the risk of individual long -term unemployment, funds job placements for 16 – 24 year olds. The financial benefit to the employer is a £1,500 payment for each person so recruited. The employer has responsibilities to mentor those taken on so that they become more employable.
For the start-up business there is the Start-up Loan Scheme that, on a per owner basis, provides loans of £500 to £25,000, subject to a ceiling of £100,000 per business.
Once start-up capital has been exhausted, the business can fund further growth using the Coronavirus Future Fund. This scheme provides matched funding alongside third party investors.
If you would like to apply for any of these support schemes or discuss your business finance needs with one of the James Stocks & Co team then please get in touch on 020 3815 3290 or firstname.lastname@example.org.
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