Over the weekend and today (April 27th) there has been a significant number of important amendments made to existing Covid-19 Business Support measures, in addition to the launch of new ones. Please read the below carefully to ensure you are fully up to date.
Please also find at the links below for newly updated government guidance that may affect your business in two key areas:
- Guidance for local authorities setting out details of the Small Business Grants Fund (SBGF) and Retail, Hospitality and Leisure Grant Fund (RHLGF).
- Guidance for apprentices, employers, training providers and assessment organisations about changes to apprenticeships due to coronavirus (COVID-19).
Bounce Back Loans Scheme
Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor has announced.
Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.
The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days.
The government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
The scheme will launch for applications on Monday 4 May. Firms will be able to access these loans through a network of accredited lenders.
Find further detailed information on the Bounce Back Loan here
New measures to protect high-street businesses from rent and closure
High street shops and other companies under strain will be protected from aggressive rent collection and asked to pay what they can during the coronavirus pandemic.
To stop these unfair practices, the government will temporarily ban the use of statutory demands (made between 1 March 2020 and 30 June 2020) and winding up petitions presented from Monday 27 April, through to 30 June, where a company cannot pay its bills due to coronavirus.
Government is also laying secondary legislation to provide tenants with more breathing space to pay rent by preventing landlords using Commercial Rent Arrears Recovery (CRAR) unless they are owed 90 days of unpaid rent.
Under these measures, any winding-up petition that claims that the company is unable to pay its debts must first be reviewed by the court to determine why. The law will not permit petitions to be presented, or winding-up orders made, where the company’s inability to pay is the result of COVID-19. The new legislation to protect tenants will be in force until 30 June, and can be extended in line with the moratorium on commercial lease forfeiture.
Furloughed workers to receive full parental leave entitlement
Furloughed workers planning to take paid parental or adoption leave will be entitled to pay based on their usual earnings rather than a furloughed pay rate.
Entitlement to Statutory Maternity Pay, as well as the other forms of Parental or Adoption Pay, are currently calculated through someone’s average earnings over an 8-week assessment period.
For Maternity Allowance, entitlement and the rate payable is also determined by looking at average earnings over a 13 week period. The statutory instrument laid in Parliament today will ensure workers whose period of family-related pay begins on or after 25 April will be assessed on their usual, full pay.
The changes will ensure those intending to take time off following the birth, adoption, or death of a child will not see their entitlement to pay affected as a result of being furloughed in the wake of the impacts of COVID-19.
