New guaranteed, government-backed, low-cost loans are being made available to businesses to support the liquidity requirements of large enterprises. With the introduction of a new Business Interruption Loan Scheme small and medium-sized business, will have access to loans of up to £5 million, with no interest due for the first 6 months.
A COVID-19 job retention scheme is being implemented whereby government grants will cover 80 percent of the salary of retained workers, up to a total of £2,500 per month. The scheme will be open to any employer in the country for a minimum of 3 months to cover the cost of wages backdated to 1 March 2020. There is currently no limit on the funding that will be available.
In addition, enhancements are being made to measures that were previously announced. For example, the interest-free period for the Coronavirus Business Interruption Loan Scheme has been increased to 12 months; next-quarter VAT payments have been deferred to mid-June; and businesses will have until the end of the financial year to submit payments. Grants for businesses that are eligible for the Small Business Rate Relief have been increased to £10,000.
We at KPMG Private Enterprise understand the potential consequences of the current global health situation for private companies. I encourage you to follow our regular series of blog posts to stay informed about how COVID-19 may affect your business strategy and operations, and to reach out to KPMG Private Enterprise advisers in your country or territory for their guidance.
Please visit the COVID-19 KPMG Private Enterprise website for details of the economic relief programs available for private businesses across the globe.
Please visit the KPMG website for our business overview and action checklist titled “Understanding the Implications of COVID-19 for private companies” (PDF 382 KB) and our guide to robust business continuity planning titled “Leading successfully in turbulent times.” (PDF 616 KB)