Financial Measures offered by the Government – 17 March 2020
Yesterday the Government announced a series of financial measures to aid the economy (in addition to those announced in last weeks budget). It would be easy to be cynical (as many journalists appear to be) but I heard a number of serious steps that will help businesses. I prefer to think of my glass as half full and I therefore see the positive in all of this. More importantly, the Government made it clear that their intention was ’to do whatever it takes’ to keep our economy moving and safeguard businesses and therefore jobs. Between Boris and Rishi they repeated the statement no less than 8 times in the 10 minute statement. I feel it is important that we understand that in these exceptional times this Government is taking exceptional steps (by the way, I have no political agenda, but just like you I have a business and I am absolutely determined for it to survive, and I believe these measures will help and I intend to take advantage of them)
Contact us now if you need any help or wish discuss aspect of your business – please note – there will be no additional fees for any help that you need during this period.
Government backed funding – all businesses
Amongst the proposal was £330bn of Government backed funding accessed through the normal channels (such as your High Street bank). The gross amount (£330bn) offered is irrelevant, the Government have promised to increase that sum if need – to do whatever it takes.
In principle it covers;
- Small to medium sized businesses;
- Loans up to £5m;
- No interest for 6 months;
- Available from next week (w/c 23rd March);
- From, amongst others, your High street bank
Next steps – contact your bank understand what is needed to make an application for funding. If you need help with any aspect of the application – we’ll help you do that.
Retail, Hospitality and Leisure – (this category will need defining)
- Business rates holiday for 12 months
- Up to £25k cash grant
The point here is that the Government recognises the immediate impact on these industries and has singled them out for additional help.
Next steps – understand if you qualify in this sector or make an application for a grant. We will continue to research this area an advise as we learn more. If you need help, get in touch.
Many small businesses that are eligible for small business or rural rate relief will be eligible for a £10k cash grant. The government estimates that this will apply to approximately 700,000 small businesses
Next steps – we will continue to research this area an advise as we learn more. If you need help, get in touch.
Mortgages – all borrowers
The Government have indicated a 3 month repayment holiday on all mortgages.
There will need to be clarity in this area as mortgages fall into primarily 3 separate categories;
- Buy-to-let – it appears the scheme does not extend to Landlords, however, a conversation with your lender is recommended if you foresee difficulties
- Commercial – this may also not be covered, so a conversation with your lender is recommended. Yesterday we had a client achieve a 6 month repayment holiday granted on the back of a phone call.
Happy to be contacted by any means;
- Landline – 01326 660022
- Mobile/WhatsApp/Text – 07779799995 – Mike Hutchinson
- Zoom – ID 205 677 7765 – Mike Hutchinson