Factsheet: financial support for businesses impacted by coronavirus

• What is it?

The COVID-19 Corporate Financing Facility (CCFF) is backed by the Bank of England (BoE) and provides funding to larger businesses and corporates in order to support their liquidity and working capital through the disruption caused by COVID-19. The scheme is funded by central bank reserves. Applications closed on 31 December 2020 for this scheme, and CCFF closes to new
issuance from 23 March 2021, with all commercial paper due to mature by March 2022.

• How does it work?

The Bank of England buys short-term debt from larger companies which are fundamentally strong but have been affected by a short-term funding squeeze. The scheme is funded by central bank reserves. All lending extended by the BoE under the CCFF is guaranteed by HM Treasury.

• Who is it for?
  

All non-financial companies that:

• are in sound financial health prior to the shock of coronavirus: this means companies that had a short or long-term rating of investment grade, as at 1 March 2020, or equivalent
• make a material contribution to the UK economy (e.g. companies with significant employment, revenues and headquarters in the UK).

If firms do not have an existing credit rating from the major credit ratings agencies, they are encouraged to speak to their bank in the first instance to discuss potential eligibility.

• How do you apply?

In order to access the CCFF, you will need to contact your bank. Not all banks issue commercial paper, but UK Finance can provide a list of banks that are able to assist. More information can be found on the Bank of England website.

• When will it be available?

The CCFF closed to new applications from counterparties and issuers looking to become eligible on 31 December 2020. The CCFF will close for new purchases of CP from eligible issuers with effect from 23 March 2021. This means that the Facility will make no purchases of CP after 22 March 2021.

• Key points of small print

Companies participating in the CCFF are required to commit to restrain their capital distributions and senior pay. Conditions apply to borrowers from the CCFF whose drawdowns mature after 19 May 2021; and to borrowers who are requesting, and approved, an increase in their CCFF limit, over and above that suggested by the issuer’s investment rating.

Disclosure: the Bank of England disclose the names and their outstanding drawings of all firms with an outstanding CCFF drawing.

Early repayment: Firms have the option to buy back their CP from the CCFF early.

If you don’t have a public credit rating but you are eligible, the Bank of England have allowed companies to work with their banks to use their own internal rating to determine eligibility, which is then confirmed with the Bank of England.

The CCFF does not cover companies in the financial industry.

• Where can I find out more?
  

Visit the government's coronavirus business support site.

• What is it?

Small and medium-sized businesses affected by coronavirus can access loans, overdrafts, invoice finance and asset finance of up to £5m. The loans are interest free for 12 months. The maximum length of the facility depends on the type of finance you apply for: up to three years for overdrafts and invoice finance facilities, and up to six years for loans and asset finance facilities. CBILS will close for new applications on 31 March 2021.

• How does it work?

CBILS gives the lender a government-backed guarantee for the loan repayments to encourage more lending. The scheme will be delivered through commercial lenders, with 80% of the loan backed by the government-owned British Business Bank (subject to pre-lender cap on claims). The remaining 20% is provided by the lender. The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. The government guarantee has now been extended to ten years, giving lenders more flexibility to extend payment terms from 6 to 10 years.

• Who is it for?

Any business that:

• Is UK-based in its business activity
• has an annual turnover of no more than £45m.

You need to show that your business:

• would be viable were it not for the pandemic
• has been adversely impacted by the coronavirus.

If you want to borrow £30,000 or more, you also need to confirm that your business wasn’t classed as a business in difficulty on 31 December 2019. Banks, insurers and reinsurers (but not insurance brokers); public-sector bodies; and state-funded primary and secondary schools are not eligible.

• How do you apply?

You should apply via your usual lender’s website or through one of the 117 accredited commercial lenders (inc. all major banks).

• When will it be available?

Available now through all major banks. CLOSING DATE: 31 MARCH 2021.

• Key points of small print

• Where can I find out more?

Visit the British Business Bank's website.

The Government has already announced that more support will be available beyond March, through a successor loan scheme. More details of the scheme will be announced in due course.

• What is it?

A government backed scheme to enable accredited banks to make loans to medium and large businesses with a turnover of over £45m. CLBILS will close for new applications on 31 March 2021.

• How does it work?

CLBILS will be available through a range of British Business Bank accredited lenders and partners, which will be listed on the British Business Bank website. Companies will be able to borrow up to 25% of turnover, up to a maximum of £200m. Lenders who wish to offer larger loans will need to undergo further accreditation checks to apply, look at the list on the British Business Bank website and contact one of the accredited lenders directly. The lender has the authority to decide whether to offer you finance. The scheme provides the lender with a government-backed partial guarantee of 80% against the outstanding balance of the facility. Finance is available to the companies in the form of: term loans, revolving credit facilities (including overdrafts), invoice finance and asset finance.

• Who is it for?

Businesses that:

• Are UK-based in their business activity with an annual turnover of more than £45 million
• Have a borrowing proposal which the lender would consider viable were it not for the current pandemic; and, that the lender believes the provision of finance will enable the business to trade out of any short-term to medium-term difficulty
• Can self-certify that it has been adversely impacted by the coronavirus
• Has not received a facility under the Bank of England’s COVID-19 Corporate Financing Facility (CCFF)

Lenders will need further information to confirm eligibility. All lending decisions remain fully delegated to the accredited lenders.

Companies from the following sectors are not eligible:

• Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive), insurers and reinsurers (but not insurance brokers)
• Building societies
• Public-sector bodies
• Further-education establishments, if they are grant-funded State-funded primary and secondary schools.

• How do you apply?

Find a lender on the list of accredited lenders on the British Business Bank website. The lender has the authority to decide whether to offer you finance. If you are turned down by one lender, then you can still approach another.

• Key points of small print

Companies borrowing more than £50m will be subject to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan, including a ban on dividend payments and cash bonuses, except where they were previously agreed. Businesses will still be 100% responsible for paying the facility back, and interest and fees charged by the lender. Lenders are expected to follow their normal credit policy when assessing security generally. Personal guarantees are not allowed for facilities under £250,000. For facilities of £250,000 and over, claims on personal guarantees applied to the scheme facility cannot exceed 20% of losses on the scheme facility after all other recoveries have been applied.

• When will it be available?

CLBILS are available now. CLOSING DATE: 31 MARCH 2021.

• Further information

Click here.

The government has already announced that more support will be available beyond March, through a successor loan scheme. More details of the scheme will be announced in due course.

• What is it?

A fast-track finance scheme for small companies, providing loans of £2,000 - £50,000 with a 100% government-backed guarantee for lenders.

From 9 November 2020, the Bounce Back Loan Scheme (BBLS) allows those companies who have already borrowed less than the maximum they are eligible for, a one-time top-up of their existing loans up to the maximum amount.

BBLS will close for new applications on 31 March 2021.

• How does it work?

Businesses can apply for bounce-back loans for 25% of their turnover up to a maximum of £50,000 with the government paying the interest for the first twelve months.

There are no forward-looking tests of business viability, no complex eligibility criteria, just a simple form for businesses to fill in.

Loan terms will be up to six years and there will be no repayments due during the first 12 months. Interest is 2.5% pa after the first 12 months.

No personal guarantees are allowed.

Firms can extend the repayment of the loans to 10 years as part of the Pay As You Grow scheme. Businesses who are struggling can now choose to make interest-only payments and anyone in real trouble can apply to suspend repayments altogether for up to six months. No business taking up Pay As You Grow will see their credit rating affected as a result.

• Who is it for?

Businesses from all sectors can apply for a facility. The business must self-certify to its lender the following:

• Confirm it is UK-based in its business activity, and established by 1 March 2020
• Confirm it has been adversely impacted by the Coronavirus
• Confirm it is not currently using a government-backed Coronavirus loan scheme (unless using BBLS to refinance a whole facility)
• Confirm it is not in bankruptcy, liquidation or undergoing debt restructuring.

• How do you apply?

Businesses should check the British Business Bank to find out which lenders provide Bounce Back Loans.

Businesses will be required to fill in a short online application form on their lender’s website, which self-certifies whether they are eligible for a Bounce Back Loan facility. Eligible companies will be subject to standard customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks. Some State aid restrictions may apply to applications.

• Key points of small print

• Lenders under the scheme can provide loans of up to £50k over six years
• The first twelve months of interest are paid by government, then 2.5% pa interest after that.
• Repayments deferred for 12 months. Early repayment is allowed and there will be no early repayment charges.

Bounce Back Top-Ups

Smaller businesses across the UK can get a ‘top-up’ to their existing Bounce Back Loan if they originally borrowed less than the maximum amount available to them. The top-ups are only available from a borrower’s existing BBLS lender. A borrower can apply for a top-up that is for the lesser of £50k or 25% of the annual turnover the borrower certified in their original successful BBLS application form, minus the value of their original loan.

• One top-up per borrower from their existing lender.
• Minimum top-up amount – £1,000.
• The capital repayment holiday runs for 12 months from the initial drawdown date on the original Bounce Back Loan. For example, if the initial drawdown date of the original Bounce Back Loan was on 1 June 2020, and the drawdown date of the top-up was on 1 November 2020, the capital repayment holiday period will run to 31 May 2021.

Pay As You Grow

A repayment framework for Bounce Back Loans that enables businesses to:
• Request an extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%
• Reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan
• Take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan.

Borrowers can use these options individually or in combination with each other and remain responsible for repaying their Bounce Back Loan and fully liable for the debt. Lenders will be in contact with businesses directly setting out the options available to them.

• When will it be available?

The scheme is available now. CLOSING DATE: 31 MARCH 2021.

• More information

Read more about the scheme at the British Business Bank.

• What is it?

THE FUTURE FUND CLOSED ON THE 31 JANUARY 2021.

£1.25bn package to protect innovative companies against the economic impacts of coronavirus. The package has two parts:

1. Future Fund: a convertible loan scheme for high-growth firms. Loans can range from £125k to £5m. The loans will be delivered in partnership with the British Business Bank. New applications to the Future Fund will be accepted until 31 January 2021.
2. Innovate UK grants for innovative companies and those companies that have already been given an Innovate UK award. Schemes include the Innovation Continuity Loans and Coronavirus Business Innovation Support Packages.

• How does it work?

The Future Fund is an unsecured bridge funding loan where the government will provide up to 50%, with the remainder provided by a matched investor(s). The full terms and conditions for the Future Fund convertible loan can be found on the government website.

The Innovate UK support is delivered through their grants and loans programme. For 2,500 existing Innovate UK customers, £200m of grant and loan payments will be accelerated. An extra £550m will be made for other existing customers, and £175k will be offered to 1200 firms not currently in receipt of Innovate UK Funding.

• Who is it for?

To be eligible for the Future Fund scheme, each of the investor(s) and the company must meet specific criteria. The investor must fall within any of the following categories:

• An 'investment professional' within the meaning given to that term in article 19 of the FPO
• A high net worth company, unincorporated associated or high-value trust falling within article 49(2) of the FPO
• A 'certified sophisticated investor' or a 'self-certified sophisticated investor' within the meaning given in articles 50 and 50A respectively of the FPO
• A 'certified high net worth individual' within the meaning of article 48 of the FPO
• An equivalent professional, high net worth, institutional or sophisticated investor in accordance with applicable law and regulation in such investor’s home jurisdiction
• An association of high net worth or sophisticated investors within the meaning of article 51 of the FPO
• Capable of being classified as a 'professional client' within the meaning given in the glossary to the FCA Rules.

Eligibility criteria for SME Package:

• Funding will be distributed through Innovate UK’s grant and loan scheme
• Further information can be found on the Innovate UK website 

• How do you apply?

The Future Fund is now live and applications will end on 31 January 2021. Applications submitted via the British Business Bank Website based on a set of standard terms and eligibility criteria.

Innovate UK have a range of support measures for companies impacted by COVID-19 and advice for current award holders. To apply, visit the Innovate UK website.

• Key points of small print

How can I use the Future Fund government loan? The bridge funding shall be used solely for working capital purposes and shall not be used by the company to repay any borrowings, make any dividends or bonus payments to staff, management, shareholders or consultants or, in respect of the government loan, pay any advisory or placement fees or bonuses to external advisers.

• When will it be available?

The Future Fund portal is live:  FUTURE FUND CLOSING DATE: 31 JANUARY 2021

THE FUTURE FUND CLOSED ON THE 31 JANUARY 2021.

• More information

Visit the government website for information on the Innovate UK schemes.

Visit the British Business Bank for more information on the Future Fund.

• What is it?
  All businesses and self-employed people in financial distress with outstanding tax liabilities may be eligible to receive tax support through HMRC’s Time To Pay service. This is agreed on a case-by-case basis, tailored to individual circumstances.
  
  
• Who is it for?
  Any business that pays tax to the UK Government and has outstanding tax liabilities.
  
  
• How do you apply?
  If you’ve missed, or are worried about missing, your next tax payment due to coronavirus, contact HMRC. You can also call the HMRC helpline for advice on 0800 0159 559.
  
  
• When will it be available?
  Available now.
  
  
• Where can I find out more?
  Visit the government's coronavirus business support site

• What is it?
  Supporting businesses by deferring Value Added Tax (VAT) payments for 3 months.
  
  
• How does it work?
  In September 2020, the Chancellor confirmed that businesses that deferred VAT due from 20 March to 30 June 2020 had the option to pay in smaller instalments over a longer period. Businesses can make smaller payments up to the end of March 2022 interest free, rather than paying the full amount by 31 March 2021.
  
  This is an ‘opt-in’ scheme for those requiring more flexibility. Businesses can now sign up to the scheme.
  
  
• Who is it for?
  All VAT-registered UK businesses are eligible.
  
  
• How do you apply?
  UK Registered businesses can either pay liabilities that have accumulated during the deferral period in one sum at the end of the 2020/21 tax year or via the New Payment Scheme. If you normally pay by direct debit, cancel it if you are unable to pay.
  
  The 'New Payment Scheme' service opened on
  23 February 2021 and will close on 21 June 2021. You can join the scheme now.
  
  
• When will it be available?
  The deferral will apply from 20 March 2020 until 30 June 2020. Businesses can now opt into the longer repayment scheme. The 'New Payment Scheme' service opened on 23 February 2021 and will close on 21 June 2021.
  
  VAT DEFERRAL ENDS: 31 MARCH 2021
  
  
• Where can I find out more?
  Visit the government's coronavirus business support site

• What is it?
  All UK employers with a PAYE scheme will be able to access support to continue paying 80% of the salary - up to £2,500 per month - of employees who have been furloughed. The scheme will run until the end of June in its current format, and then from July, the government will introduce an employer contribution towards the cost of unworked hours of 10% in July, 20% in August and 20% in September.
  
  
• Who is it for?
  All UK-based employers with a PAYE scheme will be eligible – this includes the public sector, Local Authorities and charities.
  
  
• How do you apply?
  Designate affected employees as ‘furloughed,’ notify these employees of this change (subject to employment law). Once the new online portal is live, submit information about these employees and their earnings to HMRC.
  
  
• When will it be available?
  The HMRC claims portal is available now. Businesses have until the 14th or 15th of the month to claim for the previous month.
  
  CLOSING DATE: 30 SEPTEMBER 2021
  
  
• Where can I find out more?
  Visit the government's coronavirus business support site

• What is it?
  New legislation will allow small and medium-sized businesses to reclaim Statutory Sick Pay (SSP) paid for staff sickness absence due to coronavirus. This refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of coronavirus.
  
  
• Who is it for?
  Any small or medium sized business that is UK-based and employs fewer than 250 employees as of 28 February 2020.
  
  
• How do you apply?
  A rebate scheme is being developed, further details will be provided in due course.
  
  
• When will it be available?
  The online service is now available. The government will set out steps for closing the scheme in due course.
  
  
• Where can I find out more?
  Visit the government's coronavirus business support site

• What is it?
  If you are self-employed, Income Tax payments due in July 2020 under the Self-Assessment system could be deferred to January 2021. The Self- Assessment payment on account, that is ordinarily due to be paid by 31 July 2020 could be deferred until 31st January 2021.
  
  
• Who is it for?
  If you are self-employed, you are eligible for the deferment.
  
  
• How do you apply?
  This is an automatic offer with no applications required. No penalties or interest for late payment were charged if you deferred payment of your July 2020 payment on account until 31 January 2021.
  
  
• When will it be available?
  You may apply the deferral from 31 July 2020 until 31 January 2021.
  
  
• Where can I find out more?
  Visit the government's coronavirus business support site

• What is it?
  A grant for self-employed individuals or partnerships.
  
  
• How does it work?
  The government has confirmed that the fourth SEISS grant will be worth 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500 in total. The grant will cover the period February to April 2021, and can be claimed from late April.
  
  The government announces that there will be a fifth and final SEISS grant covering May to September. The value of the grant will be determined by a turnover test, to ensure that support is targeted at those who need it the most as the economy reopens.
  
  People whose turnover has fallen by 30% or more will continue to receive the full grant worth 80% of three months’ average trading profits, capped at £7,500. People whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850. The final grant can be claimed from late July. Further details will be published in due course.
  
  
• Who is it for?
  Any self-employed person (or partnership member) who has filed a 2018/19 tax return; has traded in 2019/20; is currently trading or intends to continue trading in 2020-21 (if it weren't for COVID-19); generates more than half their total income from self-employment; and has average trading profits for 2018/19 (or the past 3 years) under £50,000.
  
  
• How do you apply?
  The online claims service for the fourth grant will be available from late April 2021 until 31 May 2021.
  
  If you are eligible, HMRC will contact you in mid-April to give you your personal claim date. This will be the date that you can make your claim from.
  
  The fifth and final grant can be claimed from late July. Further details will be published in due course.
  
  
• When will it be available?
  HMRC is working to deliver the scheme; with grants expected to be paid by early June 2020. In the interim the self-employed will still able eligible for other government support including universal credit and business continuity loans.
  
  
• Where can I find out more?
  Visit the government's coronavirus business support site

• What is it?
  The government is launching the new Recovery Loan Scheme, open to all UK businesses to access loans of between £25,000 and £10 million. The scheme will go live on 6 April 2021.
  
  
• How does it work?
  From 6 April 2021 the Recovery Loan Scheme will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million to give them confidence in continuing to provide finance to UK businesses. The scheme will be open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes.
  
  
• Who is it for?
  The scheme is open to all businesses in England, Scotland, Wales and Northern Ireland.
  
  You will be able to apply for a loan if your business is trading in the UK.
  
  You will need to show that your business:

  - is viable or would be viable were it not for the pandemic
  - has been impacted by the coronavirus pandemic
  - is not in collective insolvency proceedings - further details will be provided in due course
  Business that have received support under the existing COVID-19 guaranteed loan schemes will still be eligible to access finance under this scheme, if they meet all other eligibility criteria.

• How do you apply?
  Further details on how to apply and details of accredited lenders will be released in due course.
  
  
• Key points of small print
• To launch on 6 April 2021, the programme is scheduled to run until 31 December 2021, subject to review. The new scheme aims to help businesses affected by Covid-19 and can be used for any legitimate business purpose, including managing cashflow, investment and growth. It is designed to appeal to businesses that can afford to take out additional debt finance for these purposes. It can be taken alongside an existing covid loan. Features of the scheme will include:
  - Up to £10m facility per business: The maximum value of a facility provided under the scheme will be £10m per business. Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
  - Turnover limit: There will be no turnover restriction for businesses accessing the scheme.
  - Wide range of products: Businesses will be able to choose from a variety of products: term loans, overdrafts, asset finance and invoice finance facilities.
  - Term length: Term loans and asset finance facilities are available for up to six years, with overdrafts and invoice finance available for up to three years.
  - Interest and fees to be paid by the business from the outset: Businesses will be required to meet the costs of interest payments and any fees associated with the facility.
  - Access to multiple schemes: Businesses who have taken out a CBILS, CLBILS or BBLS facility will be able to access the new scheme, although the maximum they are allowed to borrow will depend on their lender’s assessment and scheme requirements.
  - Credit checks for all applicants: Lenders will be required to undertake credit and fraud checks for all applicants. When making their assessment, lenders may overlook concerns over short-to-medium term performance owing to the pandemic. The checks and approach may vary between lenders.

• When will it be available?
  The scheme will open on 6 April 2021.
  
  
• More information
  Visit the government's coronavirus business support site