COVID-19 - Advice on Financial Support Available to SMEs
In the Prime Minister’s update at 5pm on March 17th was detail on the package of measures being taken by them to support businesses from a financial perspective through the COVID-19 situation. Details are still being finalised so we’ll update this as and when further details are released, but here’s what we know so far.
Coronavirus Business Interruption Loan Scheme (CBILS)
One of the key support measures is the Coronavirus Business Interruption Loan Scheme (CBILS) which is being supported through the British Business Bank. There is a disclaimer on their website that states they are in the process of defining and agreeing the scheme’s details, specifications and eligibility and therefore information is subject to change. Both Lloyds and Natwest are directing their customers to these same webpage as they have no further information either.
Coronavirus Business Interruption Loan Scheme - Further Information
Guidance from the ACCA
The ACCA sent out a really useful email on March 17th detailing practical advice for SMEs, advice to employees for home working and HMRC guidance on Time to Pay arrangements for tax payments. Although some of this is aimed at accounting firms, this advice will be useful for most organisations.
HMRC Time to Pay Arrangements
HMRC has set up a phone helpline to support businesses and self-employed people concerned about not being able to pay their tax due to COVID-19. SME businesses have started getting support to delay payment of their VAT and PAYE liabilities. Some have reported that HMRC is not asking for or only requiring minimal evidence and extending their payment deadlines for the foreseeable future.
This helpline allows any business or self-employed individual who is concerned about paying their tax due to COVID-19 to get practical help and advice.
Full details and the helpline number can be found here.
Advice for Home Working
Remote working has been recommended by the Government in the UK to help control the outbreak. Find specific guidance below on how to operate remotely.
Tips and advice on running your firm remotely from the ACCA.
Practical Steps
There are a number of steps that SMEs can take to mitigate the impact that the spread of the disease could have on market demand.
Look for alternative ways to deliver services and/or products.
Consider alternative sources of supply, ensuring you don’t put your eggs in on basket, either within one company or geographic region.
Ensure you have a business continuity plan in place, and update it regularly. It should include risk around supply chains.
Consider alternative sources of finance as late payments become a growing issue.
Check what support your government is offering - there may be subsidies for struggling businesses, including help with tax relief, social security and business loan relief.
Encourage regular e-meetings to stay in touch with suppliers, customers and employees.
Ensure you offer both practical and emotional support to your staff and communicate regularly to offer this reassurance.