Support for small businesses and self-employed
With the coronavirus pandemic looking set to continue into the New Year, some businesses may be tempted to give up a vehicle to cut their costs. However, this is a big (and, potentially, risky) step.
If it is something you are considering, it’s worth keeping in mind that even if you can cope without your car or van right now, you would be on the back foot when things pick up again, while your competitors would be ready to start work straight away.
Coronavirus Business Interruption Loan Scheme (CBILS)
This is why we wanted to highlight a Government’s Coronavirus Business Interruption Loan Scheme. There was a lot of talk about it when it was first launched, but some businesses may not be aware that it was extended to 31 January 2021 at the start of November.
The scheme is open to small and medium-sized businesses, including sole traders, who mainly operate in the UK and have turnover of up to £45 million a year. You can receive up to £5 million in loans and asset finance for up to six years or in overdrafts and invoice finance for up to three years.
On top of that, the Government will cover the first 12 months of interest payments and any fees from your lenders, so there are no upfront costs and the initial repayments will be lower.
You can be in any sector, apart from banks, building societies, insurers, reinsurers, public-sector bodies and state-funded schools. The only other requirements are that you must self-certify you have been affected by COVID-19, you must not be classed as a business in difficulty and you must have a borrowing proposal that would be considered viable if it weren’t for the pandemic.
Find out more
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The Government’s ‘Bounce Back Loans scheme’ has also been extended until 31 January 2021 and it offers quick access to a loan of between £2,000 and £50,000. Find out more in our guide Government support for businesses and the self employed.
This article was originally published on 15th April 2020 and was updated on 1st December 2020.