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New COVID-19 Financial Support Measures

New financial measures have been unveiled by the chancellor, Rishi Sunak, which will have an impact on Lancashire businesses.

 

Let’s have a look at the highlights.

 

Coronavirus Loan Schemes:

·         Application dates for CLBILS, CBILS and BBLS have now been extended to 30 November 2020

 

“Pay as you Grow”

·         Businesses who have taken out Bounce Back Loans will be given more time to repay, allowing owners to extend repayments for up to 10 years

·         Businesses can also move to interest-only payments or suspend payments for up to six months if they are in “real trouble”

 

Job Support scheme:

 

As the furlough scheme comes to an end in October a new Job Support scheme has been introduced in order to preserve jobs and run for six months.

 

Employers will need to share the cost of paying their worker “missing” wages, with their employee working at least a third of their contracted hours to qualify.

 

This will require businesses to budget diligently to ensure the business can meet its cash flow requirements and payroll costs.

 

VAT cut extension

 

A 15% VAT rate cut (5%) for the hard-hit hospitality and tourism sector until March 21 will be well received.

 

VAT deferrals

 

Vat deferrals will no longer need to be paid in a lump sum in March next year. Again, good news, businesses will need to budget accordingly to ensure that it has sustainable plans to repay over a period.

 

If you are a Lancashire based business and need help to understand how these new measures will impact you or you need support with funding and finance to grow the Access to Finance team are ready and willing to help.

Call us on 0808 196 5099, or via email at bgh@growthco.uk

About the author

Mark Gibbons

Mark Gibbons

Mark is the Senior Access to Finance Specialist in Lancashire and is responsible for day to day management of our Access to Finance specialists across the county.