Loan support for business: the next stages
There's still government help available to support your company through the coronavirus crisis, says RACHAEL COBB, who heads up Page Kirk's Accounts Department.
Access to loans has been one of the important ways the UK government has tried to keep business afloat during the challenging COVID-19 crisis.
The Coronavirus Business Interruption Loan was scheduled to close at the end of September, while applications for the Bounce Back Loans were no longer going to be accepted from the start of November. Now, in recognition, of the ongoing issues presented by the pandemic, Chancellor Rishi Sunak has announced that applications for both schemes are extended until the end of November, with a view to supporting companies through the winter months ahead.
There is further good news for business, in that these loans have been given added flexibility with the Government launch of the 'Pay As You Grow' loan payback scheme. The maximum term for both loans has been extended from six years to 10. This will help businesses reduce their monthly payments and free up some much needed cashflow.
The Government has also said that businesses can choose to make interest-only payments and anyone finding these payments too much can apply to suspend them for up to six months. The credit rating of any firm taking up Pay As You Grow will not be affected.
A new loan scheme has been signalled for January, with more details to come in due course.
As times are still uncertain, it is of course possible that some of this information will change over the coming months. At Page Kirk, we will work hard to provide you with the latest updates on the coronavirus schemes. If you need more information, would like help with any applications or are looking for any business advice – including forecasting and budgets – please contact a member of our team calling on 0115 955 5500 or email firstname.lastname@example.org.