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What the government’s new winter support package means for your business

Rishi Sunak has revealed a new winter package of measures to help businesses with the continuing impact of coronavirus. From a revised employment scheme to business loan extensions on BBLS and CBILS, we’ve summarised all the key info (from what we know right now).

This guide will be added to as more information is released.

Loan application extensions and Pay As You Grow scheme

Bounce Back Loan Scheme

More than a million businesses received £38bn of BBLS loans. While originally there were no repayments or interest for the first 12 months, there will now be even more time and flexibility to pay back the loan.

As part of what Sunak coined a ‘Pay As You Grow’ scheme, the loan terms will be extended to between six and 10 years, potentially halving the monthly payments companies will need to make.

If your business is struggling, there will also be the chance to take a payment holiday for up to six months or to make interest-only repayments.

Coronavirus Business Interruption Loan Scheme

Over 60,000 businesses have been supported by CBILS with £15.45 billion lent to-date. The chancellor also promised the government guarantee would be extended on CBILS loans for up to 10 years, giving borrowers more time to repay.

The deadline for all coronavirus loan schemes, including the CLBILS (for larger businesses) and Future Fund, has been extended until 30 November.

Lenders will have until the end of 2020 to process applications.

The Bounce Back Loan deadline was previously 4 November and CBILS applications were due by 30 September.

A successor guarantee programme will also launch in January (more details on this to follow).

More time and flexibility on tax bills

There will also be more time and flexibility on tax bills. Those businesses who deferred payments to March 2021 can now spread the cost over 11 smaller repayments with no interest (rather than face a big lump sum).

The self-employed can also extend their tax bill over 12 months from January too.

VAT payments will remain at 5% for hospitality until 31 March next year, with the industry continuing to face big disruption.

New Job Support Scheme

As the Coronavirus Job Retention Scheme comes to a close at the end of October, the government has announced a new Job Support Scheme created to reflect that lots of businesses are now back open, but with reduced operating. 

The scheme will ensure employees receive up to 77% of their salary if they work at least 33% of their hours – with the remainder part-covered by the government and the employer – a third each.

Does your business need funding?

At Fluidly, we work with a range of CBILS-accredited lenders, including Funding Circle, iwoca, and MarketFinance, so you can review options across the entire market.

Although the deadline for this one-off scheme has been extended, it’s still worth starting an application early to keep your options open and get a faster decision.

Find out your funding options here in just 30 seconds.

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