The Government has announced extraordinary new support for businesses and individuals needing financial assistance during the Coronavirus crisis, including:
- £330bn in accessible, government-backed loans available to all businesses. For small businesses, facilities of up to £5m will be available, with no interest payable in the first 6 months. This should be available from the start of next week.
- An increase in cash grants from £3,000 to £10,000 for businesses who are currently eligible for Small Business Rate Relief, or Rural Rate Relief.
- Confirmation that the advisory measures announced yesterday, whereby the public was asked to avoid pubs; cafes; restaurants; and theatres, is sufficient for businesses in that sector to make claims on their business interruption insurance.
- An increase in the cash grants available to businesses in that industry who don’t have such insurance, with cash grants of up to £25,000 per business now available.
- An extension of the temporary 100% business rates relief for the leisure; hospitality; and tourism industry, which now covers businesses of all sizes regardless of their rateable values.
- Mortgage holidays of up to 3 months for individuals in financial difficulty.
In the meantime, we urge clients to review their business insurance cover to ensure that they are fully aware of the types of cover they have.
If you have any questions regarding these measures, please feel free to contact us.