The government announced the March 2021 Budget last week to continue support some of those hit the hardest by the global pandemic with extensions to Furlough, self-employed support, business grants, loans and VAT cuts.
There isn’t much that impacts commercial finance, except the confirmation that CBILS loans and Bounce Back loans will end at the end of March 2021.
So, what is going to happen next? Rishi Sunak has announced a new scheme, The Recovery Loan Scheme, and the key points are:
· When does it start? The scheme launches on the 6 April, (currently until the 31 December 2021)
· Who is it for? UK businesses who can demonstrate that, but for the pandemic, they would have been viable.
· How much can I borrow? from £25,000 to £10m.
· Am I still eligible if I have already benefitted from another COVID Scheme? Yes, as long as you meet the general eligibility criteria.
It is too early to tell if this will be enough for small business, and of course we don’t know yet how the process will work in reality, but the big change for now is that there will be at least some scrutiny on the business itself and how Covid has actually impacted it.
We are waiting for more updates from the government and we will keep you updated as they come available. In the meantime, ASC is available to support you and your business.