Bounce Back-Loan Scheme (BBLS)
Bounce back loan scheme is a new loan scheme introduced by UK government through which loans up to £50,000 are provided primarily to support COVID19 affected small and medium-sized businesses - an easy to access loan at low-interest rate bank loan. The scheme has been extended till 31st January 2021.
- Interest rate: Fixed 2.5% per annum.
- No interest for the first 12 months (government to pay interest for 12 months).
- Government to provide a guarantee of 100% on each loan without any charge.
- How much can you borrow: 25% of annual revenue (2019 calendar year) or Maximum amount: £50,000
- For business established after 1st Jan 2019, turnover to be calculated on an estimate basis.
- Term: The length of the loan is 6 years (can be extended to 10 years). But you can repay early without paying a fee.
- No repayments will be due during the first 12 months.
To know more about "Bounce back loan scheme", click here.
Note - Borrower is liable to repay 100% of the loan
Kickstart (Recruitment Scheme)
Kickstart scheme that opened on 2nd September 2020, is an initiative from the UK government to create hundreds of thousands of high-quality placements for 6 months period for the people between the age group of 16 to 24 who are claiming Universal Credit. Under the scheme, the government will fund 100% of the national minimum wage, including national insurance and pension contributions for 25 hours a week to employers. This scheme will open for new Kick-starters to initiate their placements up until December 2021.
- The government will provide up to 100% of the:
- National minimum wage (NMW) to the employer to create job placements, covering a maximum of 25 hours a week.
- Employer national insurance contributions
- Employer minimum pension contribution.
- An initial grant of £1,500 for each job placement is provided for set up costs, support and training.
- This step costs will only be paid by the government after the confirmation that a younger person has started commencing the work and enrolled on your payroll to be paid through PAYE.
- The employers can also choose to top up the wages above the NMW if they like, but the government will pay no additional contribution.
To know more about "Kickstart Scheme", click here.
Coronavirus Business Interruption Loan Scheme (CBILS)
Coronavirus business interruption Loan scheme is a new scheme introduced by the UK government to provide financial support to eligible smaller businesses that are adversely affected by Coronavirus pandemic. The coronavirus business interruption loan scheme (CBILS) has been extended until 31st January 2021.
- Up to £5 million facility - loan of amount up to £5 million.
- 12 months finance interest-free - Government to cover the interest for the first 12 months.
- 80% Guarantee - Government to provide lenders with a guarantee of 80% on each loan.
- No guarantee fee - No fee for smaller businesses.
Finance terms -
Up to six years for term loans and asset finance facilities.
Up to three years for overdrafts and invoice finance facilities.
The Borrower always remains liable to pay 100% of the principal and interest after 12 months.
To know more about "Coronavirus business interruption loan scheme", click here.
Coronavirus Future fund
Coronavirus future fund scheme is the scheme announced by UK government to issue convertible loans between £125,000 to £5 million to innovative companies who are not having adequate funds and facing financial difficulties in continuing business operations due to coronavirus outbreak.
To know more about "Coronavirus future fund scheme", click here.
Coronavirus Job retention scheme (CJRS)
All UK employers will be able to access support to continue paying part of their employee's salary for furloughed workers-those employees that would otherwise have been laid off during this crisis.
- Payment of 80% of staff salaries up to £2,500 (gross pay) per month per worker for those who are on PAYE and unable to work.
- Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. (New)
- This extended scheme is available to all employees who were on the Employer's PAYE payroll by 23:59 on 30 October 2020.
- This Scheme is also available to employees employed as of 23 September who has since been made redundant can be rehired and placed on the Scheme.
- The Coronavirus Job Retention Scheme has been extended till 31 March 2021.
Green homes grant scheme
“Green homes grant scheme” is a scheme introduced by the UK government to provide landlords and home-owners with vouchers up to £10,000 to spend in improving the energy efficiency of their homes. As a landlord, you can cover the two-third of your home improvement cost to claim up to £5,000 and can make your home more energy-efficient. In case you are having low income or availing certain benefits, you can apply for vouchers up to £10,000. This initiative is designed by the UK government to promote energy efficiency and to boost the country’s economy in the coronavirus pandemic. There are various benefits that a landlord can avail by choosing green homes grant scheme -
- It helps in saving your money on high utility bills.
- It makes your tenants happier than before.
- It helps make your home more energy-efficient.
- It will attract more eco-friendly tenants which is the biggest benefit you can avail as a landlord because 42% of tenants consider eco-friendliness while choosing a new property.
Issuing of Vouchers will start from early in the November 2020 and are valid from 3 months from the date of issue or until 31 March 2021 (whichever is earlier).
To know more about "Green homes grant scheme", click here.
Job Support Scheme (Replacement for furlough scheme)
Job support scheme is a scheme introduced by the UK government to provide protection to jobs in businesses who are facing lower demand over the winter months due to Covid-19. The scheme is not available at least till December 2020.
- It is available to both small and medium-sized businesses.
- Employees must work for at least 20% of their normal hours.
- If you didn’t use the furlough scheme before, you could be still eligible to apply for the Job support scheme.
- Employers will continue to pay the staff wages as per their working hours. However, for non-working hours the government will provide up to 61.67% of wages, up to £1,541.75 per month.
- An employee working 20% of their normal hours will receive at least 73% of their pay.
This scheme will start from 1 November 2020 and run for 6 months, i.e. until April 2021.
Job Support Scheme expansion for closed business premises
Recently, the UK government expanded the Job support scheme to protect the jobs and support businesses across the UK that have closed their doors due to Covid restrictions. The scheme is not available at least till December 2020.
- Increased cash grants up to £3,000 per month for businesses that are required to close in the local lockdown.
- 2/3rd of employees' salaries, up to a cap of £2,100 will be paid by the government to protect the jobs in the coming months.
Self-employed income support scheme (SEISS)-Extended
The extended self-employment Income support scheme offers critical support in the form of grants to those self-employed people who are adversely affected due to Coronavirus.
- There will be two grants - each available for 3 months period.
- First grant - November 2020 to January 2021
- Second grant – February 2021 to April 2021
- The overall level of grant has been increased from 55 percent to 80 percent of trading income for 3-month period up to a maximum of £7,500.
- Grant will open on 30 November 2020.
Statutory Sick Pay (SSP)
- For Employees - Individuals diagnosed with COVID-19 or those who are unable to work because they are self-isolating are entitled to Statutory Sick Pay (SSP) from Day 1.
SSP will be payable from day 1 at £94.25 per week for those who are off work.
- Those (including company directors) unable to work because they have been sick with COVID-19, or are self-isolating, or been advised to be in quarantine.
- Earning an average of at least £118 per week.
- Contractors working through an Umbrella company are legally entitled to SSP.
- For Employers - Small and Medium-sized businesses (SME's) and employers can reclaim Statutory Sick Pay (SSP) paid to employees for sickness absence due to COVID-19.
An employer can reclaim expenditure for any employee who has claimed SSP (due to being off work because of COVID-19) for up to 2 weeks‟ SSP per eligible employee.
The UK based businesses with fewer than 250 employees as of 28th February 2020.