The government has announced that it will be extending the application dates on the financial support packages for businesses affected by coronavirus. This means the furlough scheme will be extended until April 2021, along with the Bounce Back, CBILS and CLBILS loan schemes.
What are the extended deadlines for CBILS and BBL applications?
The government has announced the following extensions to the Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loans (BBL) and the Future Fund. The final application dates are as below:
- Coronavirus Business Interruption Loan Scheme (CBILS) – Wednesday, March 31, 2021
- Coronavirus Large Business Interruption Loan Scheme (CLBILS) – Wednesday, March 31, 2021
- Bounce Back Loan (BBL) – Wednesday, March 31, 2021
- Future Fund – Sunday, January 31, 2021
Has the furlough scheme been extended?
The government’s Coronavirus Job Retention Scheme – also known as the ‘furlough scheme’ – has now been extended been extended until the end of April 2021. Employees can get 80% of their pay from the government, up to a maximum of £2,500 a month.
NOTE: The following schemes have now been shelved.
What is the the Job Support Scheme?
Introduced to replace the Coronavirus Job Retention Scheme, the Job Support Scheme will see the government pay a third of an employee’s wages, so long as they work at least 33% of their usual hours and are paid by their employer for these hours. They will be paid on a monthly basis, one month in arrears.
The scheme will run for six months from November 1st, and employers will be able to make a claim online through GOV.UK from December 2020.
Businesses who utilise the Job Support Scheme will still be able to benefit from the Job Retention Bonus, which rewards employers who bring workers back from furlough and retain them in employment until the end of January 2021 with a bonus of £1,000.
What is ‘Pay-as-you-Grow’?
The government has also announced a change to Bounce Back Loans in the form of ‘Pay-as-you-Grow’, which offers businesses more time and greater flexibility to repay their Bounce Back Loan.
Repayment periods can now be extended from six to ten years, which will cut the average monthly repayment by just under half. Businesses might also be eligible to make interest-only payments or even defer payments for up to six months. ‘Pay-as-you-Grow’ will not affect the credit rating of any business that applies.
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