Government extends support to businesses affected by COVID-19
This article was updated on 20/03/2020.
The government yesterday extended its support package to help businesses who continue to be affected by the coronavirus (COVID-19) pandemic.
Chancellor Rishi Sunak announced the measures alongside Prime Minister Boris Johnson during yesterday’s daily update on how the government is tackling the crisis.
The Coronavirus Business Interruption Loan Scheme, announced in last week’s Budget, will now enable businesses to apply for lending of up to £5 million – a large increase from the £1.2 million cap that was in place when the initiative was first announced.
In addition, no interest will be due on the first 12 months, with the Scheme due to commence from next week.
To further support businesses with cash flow and their fixed costs, the Chancellor revealed that eligible businesses in the retail, leisure and hospitality sectors could receive cash grants of up to £25,000, as well as a 12-month business rates holiday for companies in affected sectors.
And rather than the £3,000 cash grant announced last week, businesses eligible for small business rates relief will now receive £10,000 to support cash flow.
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