Jobs Support Scheme
The UK Government announced the Jobs Support Scheme on 24 September.
See our information about supporting staff for more details.
Job Retention Scheme (furlough)
The Government’s Coronavirus Job Retention Scheme partially pays salaries of those who cannot work due to the coronavirus crisis, in order to avoid employers making redundancies. It has been extended to the end of September 2021 with employees receiving 80% of their current salary for hours not worked.
The Kickstart Scheme provides funding to employers to create new 6-month job placements for young people aged 16 – 24 who are currently on Universal Credit and at risk of long-term unemployment.
If you are employing less than 30 Kickstart roles you need to apply through an intermediary representative organisation.
To register your interest please contact us at email@example.com
In addition to specific funding for charities and voluntary organisations to help them deal with the effects of coronavirus, some organisations with premises may be able to access extra rates reliefs (discounts) and one-off grants from the Scottish Government.
You can find more details of business support schemes at FindBusinessSupport.gov.scot
Grants for businesses that are required to close by law as a result of COVID-19 restrictions. The type of support you can get depends on what Tier your organisation is in and the restrictions it is subject to.
Limited companies, including Scottish Charitable Incorporated Organisations, can apply provided they meet the criteria below:
- your business has been directly impacted by restrictions, and the type/sector is specifically mentioned
- your business is registered for non-domestic rates
A top-up to the grant support available for hospitality, retail and leisure businesses across Scotland closed by level 4 restrictions.
In addition to the grants businesses receive through the Strategic Business Framework Fund, eligible businesses will also get a one off grant of:
- £25,000 for larger hospitality businesses on top of the 4-weekly £3,000
- £6,000 for smaller hospitality businesses on top of the 4-weekly £2,000
- £9,000 for larger retail and leisure businesses on top of the 4-weekly £3,000
- £6,000 for smaller retail and leisure businesses on top of the 4-weekly £2,000
In most cases, eligible businesses that have already applied for the 4-weekly payment from the Strategic Framework Business Fund will get an automatic top-up.
Coronavirus Business Interruption Loan Scheme (CBILS)
The CBILS scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million. Smaller businesses from all sectors can apply, but check the eligibility checklist for further information and the FAQ section.
Charities are in principle eligible if they satisfy the other eligibility criteria of the Scheme.
Note: Registered Charities are exempt from the requirement that 50% of the applicant’s income must be derived from its Trading Activity.
The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
Note: The borrower remains fully liable for the debt.
The Chancellor has extended the Government guarantee for up to ten years, making it easier for lenders to give more people more time to repay.
The scheme will close on 31 March 2021.
How to apply
There are over 50 lenders participating in the scheme including all the main retail banks. Organisations should approach a suitable lender directly via the lender’s website. A full list of accredited lenders and partners is available.
The Resilience & Recovery Loan Fund (RRLF)
The Resilience & Recovery Loan Fund (RRLF) is a new fund for social enterprises and charities who are experiencing disruption to their normal business model as a result of COVID-19. It has been established to make the Coronavirus Business Interruption Loan Scheme (CBILS) more easily accessible to charities and social enterprises. It can offer loans of between £100,000 and £1,500,000.
This Fund is only for UK charities and social enterprises which fulfil the eligibility criteria of both the RRLF and CBILS – the full list of eligibility criteria can be found on the SIB website.
A RRLF loan can be used to:
- provide working capital until normal business resumes
- cover delays in trade payments
- meet increased demand for services
Eligible social organisations can apply for RRLF loans until 11.59pm on Wednesday 31 March 2021. Applicants will be considered on a first come first served basis and the closing date of the fund is subject to constant review.
Bounce Back Loans
The Bounce Back Loan scheme helps small and medium-sized businesses to borrow between £2,000 and £50,000.
The requirement for more than 50% of the income of the business (together with that of any member of any group of which it is a part) is derived from its trading activity: this confirmation is not required if the borrower is a charity or a further education college.
The Chancellor has introduced the Pay as you Grow scheme where loans can be extended from six to ten years, halving the average monthly repayment.
The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
Struggling businesses can choose to make interest-only payments or suspend payments entirely for up to six months.
Note: The borrower always remains fully liable for the debt.
How to apply
You should approach a suitable lender directly, ideally via its website. A list of accredited lenders and partners is available. You cannot apply for a Bounce Back Loan if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).
Recovery Loan Scheme
The Recovery Loan Scheme is a new loan scheme announced by the Chancellor in the March 2021 budget. It will replace the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme.
The scheme launches on 6 April and is open until 31 December. Loans will be available through a network of accredited lenders, whose names will be made public in due course.
Deferred Tax Bills
The Chancellor has announced that VAT deferrals due in March can now be spread over 11 smaller repayments with no interest to pay. For self-assessments, the outstanding tax bill can be spread over 12 months from January.