COVID-19: Support for businesses
The government has developed a package of support for businesses in response to Coronavirus, including changes to business rates and relief schemes and grants.
Business Rates relief and grants
On 11 March 2020, the Chancellor of the Exchequer announced that there would be specific support for small businesses, and businesses in the retail, hospitality and leisure sectors. Estate agents, lettings agencies and bingo halls will be exempt from business rates. This support includes giving all retail, hospitality, leisure and nursery businesses a 100% business rates holiday for the next 12 months and the following two cash grant funding schemes:
Small Business Grant Fund: a £10,000 grant will be provided to businesses currently eligible for small business rate relief (SBRR).
Retail, Hospitality and Leisure Grant Fund: a £25,000 grant will be provided to retail, hospitality and leisure businesses that have a rateable value between £15,000 and £51,000.
You can only claim this grant funding if you pay business rates or are eligible for small business rate relief (SBRR). Read more about the scheme.
Apply for a cash grant online.
Read more about Government financial support for businesses during coronavirus here.
Business Interruption Insurance
Businesses that have cover for both pandemics and government-ordered closure should be covered, as the government and insurance industry confirmed on 17 March 2020 that advice to avoid pubs, theatres etc is sufficient to make a claim as long as all other terms and conditions are met. Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. The government is pushing for insurers to pay where cover against diseases is included. Read more on the ABI website.
Closing certain businesses and venues
On 23 March 2020, the government stepped up measures to prevent the spread of coronavirus and save lives. View the types of businesses and venues which must close.
Financial support and cashflow
Bounce Back Loan
On 4 May, the Government launched a new scheme for those in need of smaller business loans. Businesses can apply for the new Bounce Back Loans between £2,000 and £50,000 and access the cash within days. The Government will pay the interest for the first 12 months and support lending by guaranteeing 100% of the loan. Find out more and apply here.
Coronavirus Business Interruption Loan
The Coronavirus Business Interruption Loan Scheme (CBILS) is available for SMEs through more than 40 accredited lenders across the UK. The scheme, which offers loans of up to £5 million, is being delivered by the British Business Bank and will provide lenders with a guarantee of 80% on each loan.
Large businesses with an annual turnover of over £45 per year can apply for up to £200 million of finance from the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
Corporate Financing Facility
The Corporate Financing Facility helps large businesses affected by coronavirus through the purchase of their short-term debt by the Bank of England where the Bank of England will buy short term debt from larger companies.
Paying your employees: Job Retention Scheme
Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. HMRC will pay employers a grant worth 80% of an employee’s usual wage costs, up to £2,500 a month.
This scheme is being extended until October. It will continue in its current form until the end of July and then new flexibility will be introduced from August, including the option for furloughed workers to return to work part-time, with employers being asked to pay a percentage towards the salaries of their furloughed staff.
Coronavirus sick pay scheme
The scheme allows small and medium-sized employers, with fewer than 250 members of staff, to apply to recover the costs of paying coronavirus-related Statutory Sick Pay for two weeks – worth nearly £200 per employee. Find out more and apply.
Prince’s Trust and NatWest Relief Fund
The £5m Enterprise Relief Fund will offer grants to 18 to 30-year olds across the UK who are self-employed and/or running their own business. The initiative also offers one-to-one support and guidance. Register for grants and tailored support.
Tax payment holidays
For the self-employed, Income Tax payments due in July 2020 under the self-assessment system will be deferred to January 2021. Businesses may also be able to agree a bespoke Time to Pay arrangement. VAT payments will be deferred from 20 March 2020 until 30 June 2020.
Rent relief for commercial tenants
The government has announced that commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction. These measures, included in the emergency Coronavirus Bill currently going through Parliament, will mean no business will be forced out of their premises if they miss a payment between 23 March and 30 June, 2020.
Transport for London tenant rent relief
All small and medium businesses on TfL’s estate, which make up 86% of tenants, are to get 100% rent relief. This will start from start from 25 March for the next three months. More information.
Network Rail tenants
Network Rail/The Arch Company has published details of the £10 million Hardship Fund that will be used to cover the cost of a three-month rent free period (March to May) for independent small businesses in the retail, hospitality, leisure and overseas travel sectors, as well as others severely affected by COVID-19. Read more.
Support for the self-employed
Read about how the self-employed can access help.
Support for businesses trading internationally
Advice for UK businesses that export or deliver goods and services abroad and have been impacted by the spread of coronavirus can be found on GOV.UK.
Reopening your business
Non-essential businesses, hairdressers, restaurants, cafes and pubs that are COVID-19 secure and comfortable managing requirements that will keep customers safe are able to reopen to the public, provided they meet government criteria for keeping staff and customers as safe as possible.
Safety guidance
See guidance on reopening and operating your business safely during COVID-19 here. You can also download social distancing signage and the government’s ‘Staying COVID-19 Secure in 2020’ notice.
My Virtual Wandsworth
If your business is open, you can list it for free on online directory My Virtual Wandsworth, to let residents know that you are open for business.
Additional guidance
View the Government guidance for employers and businesses on COVID-19.
View COVID-19 related health and safety guidance for food businesses.
Further information on COVID-19 support for your business can be found on the following websites:
The Federation of Small Business (FSB)
If you have a query that isn’t covered by this guidance, please contact the Business Support Helpline.
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