How Can I Avail The COVID-19 Loans & Grant For My Business in London?

Considering the issues faced by the businesses due to coronavirus outbreak in the UK, the government has announced relief for them in the form of grants and loans. COVID-19 loans & grant for business scheme is initiated to facilitate small and medium-sized businesses so that they can cope with their cash flow issues effectively and can survive in the industry and market. A number of grants and loans are there to be availed for your business in London, and by taking all the terms and conditions into account, you can avail them with ease.

Eligibility Criteria

To take advantage of The Coronavirus Business Interruption Loan Scheme and grants offered by the governments, there are certain terms and conditions that are must be followed to apply for grants or loans. 

Conditions For Grants

In the case of availing grants, you do not need to apply for it as if your business is found to be eligible in this regard; respective local authorities will be contacting you. The government has announced a number of grants and loans for a variety of business sectors according to their scope and tax rates. For small businesses in the UK and specifically in London that are paying little or no corporate taxes because of small by business tax relief, the government is offering a grant of £10,000. While for the businesses in the hospitality, retail, and leisure sectors, this grant will be between £10,000 and £25,000, but for being eligible for it, a business must have a rateable worth under £51,000. If your business is of any of the aforementioned categories, you will be entitled to grab the grant.

Conditions For Loans

Under the Coronavirus Business Interruption, the Loan Scheme government is temporarily offering loans of up to £5 million with the help of the British Business Bank. With this scheme, businesses in London and the UK will be able to get loans interest free for the first six months as the government is supposed to be covering interest payments in this time period. The basic purpose of this scheme is to facilitate businesses to cope with their cash flow problems. The government will make available moneylenders with a guarantee of 80% on every loan in order to give lenders assurance in enduring to afford loans for small and medium businesses. Banks and businesses will not be charged for this security, but there will be certain per-lender limits on the number of entitlements.

For taking advantage of this scheme, your business must have annual revenue of up to £45 million. In this regard, your hired accountants in London can help you realize that either your business is eligible for it or not.

How to Apply?

For availing loans, according to the terms and conditions of this scheme, you must have a lender, and it is your duty to make them agree to finance your business. Under this scheme, the personal guarantees in any form for the provided loan below£250,000 will not be entertained by the lenders. For services above £250,000, personal guarantees might still be essential, at a moneylender’s choice, but they will be excluding the Principal Private Residence and retrievals under these are covered at a maximum limit of 20% of the outstanding balance of the Coronavirus Business Interruption Loan Scheme after the proceeds of business possessions have been applied. 

Having services of professional accountants can help you make it easier for your business to get loans to cope with your cash flow and other related issues. WeAccountax is one of the best-known accounting firms in London and has the skills and expertise to help you get the most of the offered loans for your business.