Copy
View this email in your browser

BUSINESS UPDATE: COVID-19

Update No.19 - 28th April 2020
Good afternoon,

The Chancellor announced another major initiative in the Government’s bid to provide financial assistance to those small businesses which are struggling with the affects of coronavirus. We also bring some news regarding Welsh Government’s business support measures for the Creative Industry sector in Wales, together with an update on the Welsh Resilience Fund.

Bounce Back Loan Scheme
  • Yesterday the Chancellor announced a new loan scheme intended to help small businesses which are struggling with the affects of COVID-19, and are having difficulty in obtaining support from the banks.
  • There has been a considerable amount of criticism concerning the speed with which the banks have responded to agreeing loans under the Business Interruption Loan Scheme, and they have come under fire for delays in handling loan applications.
  • This new scheme is intended to get financial assistance to those small businesses who need it urgently, and aims to unlock a backlog of credit checks by banks and speed up the real need for access to loans, for those affected by the COVID-19 crisis.
  • Sole-traders, micro-firms, and entrepreneurs will all now have a simple route to fast finance in order to stay afloat, and without any red tape!
  • The Bounce Back Loan Scheme is intended to help small and medium-sized businesses to borrow between £2,000 and £50,000, up to a limit of 25% of their turnover.
  • The Government will guarantee 100% of the loan, and there will be no fees or interest to pay for the first 12 months.
  • Loans will be made available for a period of up to 6 years, and there will be no repayments due in the first 12 months.
  • The Scheme is due to be launched on 4th May 2020, and applications will be dealt with through a two-page self-certification form online, through accredited lenders, and it is envisaged that submissions will be turned around in 24 hours.
  • Businesses which are based in the UK, have been negatively affected by coronavirus, and were not in financial difficulty as at 31st December 2019, will be eligible.
  • Businesses which are NOT eligible include banks, insurers, public-sector bodies, grant-funded further education, and state-funded primary and secondary schools.
  • Whilst you cannot apply if you are already claiming under the Coronavirus Business Interruption Loan Scheme – if you have already received a loan of up to £50,000 under CBILS, and would like to transfer it to the Bounce Back Loan Scheme, you have until 4th November 2020 to do so. This clause may need some more detailed explanation in due course!
  • More information about the scheme will be published shortly, but the Chancellor did confirm that he is rejecting any calls for 100% government guarantee of all loans, on the basis that he has to balance the needs of the small business with the risks to the taxpayer.
Creative Wales Fund
  • This fund was originally launched by Welsh government in February 2020 in support of the Creative Industries sector in Wales. This sector is one of the fastest growing parts of the Welsh economy.
  • On the 20th April 2020 the Fund was updated in order to specifically address TV Development and Digital Development. 
  • The Fund has now updated its website, and has listed a number of initiatives to help the Creative Industries sector in Wales. The advice given is to visit the website to familiarize yourself with the scheme - https://www.wales.com/creative-wales
  • The Emergency TV Development Fund will provide immediate financial support for indigenous independent production companies, and for TV only. Contact creativewales@gov.wales 
  • Film project support is provided by Ffilm Cymru Wales for theatrically released projects by Welsh writers, directors and producers. Contact creativewales@gov.wales 
  • The Emergency Digital Development Fund will provide immediate financial support for games, animation, digital agencies, and creative digital businesses. Contact creativewales@gov.wales 
  • Applications are invited and will close on 18th May 2020.
  • There is also assistance for the music industry in Wales through the Grassroots Music Relief Fund, but at the present time, and because of unprecedented demand, no further applications are being accepted.  We will endeavour to bring you further details of this when the fund re-opens.
Additional Information
  • The Government have announced a new Life Assurance Scheme for families and dependents of NHS staff who have died in the course of their work, and as a result of COVID-19. This will take the form of a £60,000 payment to each family who has lost a loved one. 
  • The Welsh Economic Resilience Fund has now been paused following the very large number of applications, in order to give Welsh Government an opportunity to consider what further support businesses, charities and social enterprises need. We will keep you updated on any further developments.
Best wishes
Mitchell Meredith
Copyright © 2020 Mitchell Meredith Ltd, All rights reserved.


Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

Email Marketing Powered by Mailchimp