Tech business support and updates
Update 22/10/20: Chancellor increases financial support for businesses and workers
Vital new funds targeted at innovation to be released by the Treasury: See Tech Nation CEO Gerard Grech’s Coronavirus updates >
The Coronavirus Business Interruption Loan Scheme has been extended and will remain open for applications until the end of January 2021. CBILS lenders will also have the ability to extend the length of loans from a maximum of six years to 10 years. The scheme helps viable businesses with a turnover of up to £45m to access government-backed finance of up to £5 million.
Applications to the Future Fund will also remain open until the end of January 2021. The Future Fund is a package of measures to support pre-revenue firms, such as innovative and competitive companies in the tech and creative sectors. These bridging loans, as well as extra support from Innovate UK and the British Business Bank, will bring aid to businesses across DCMS sectors. Full eligibility criteria and details on how to apply can be found here.
The Bounce Back Loan Scheme (BBLS) will also remain open until the end of January 2021. The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. For those businesses that have already taken out a Bounce Back Loan, the Government has introduced a Pay as You Grow repayment system. This includes extending the length of the loan from six years to 10, interest-only periods of up to six months and payment holidays. Full eligibility criteria and details on how to apply can be found here.
Innovate UK’s grants and loans scheme – focused on supporting small and medium sized enterprises focused on research and development.
Top-up to local business grant funds scheme, a discretionary fund has been set up to accommodate certain small businesses previously outside the scope of the business grant funds scheme.
The furlough scheme has now been extended until March 2021, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500.
At the end of October, the Government announced it will significantly increase the generosity and reach of its winter support schemes.
Full details and eligibility criteria can be found here. The Job Support Scheme will be open to businesses even if they have not previously used the furlough scheme.
For the self-employed, the government is extended its support package. The Self-Employment Income Support Scheme Grant Extension provides critical support to the self-employed in the form of two grants, each available for three month periods covering November 2020 to January 2021 and February 2021 to April 2021.
These will be available to anyone who was previously eligible for the SEISS grant one and grant two (although they do not have to have claimed the previous grants), and meets the eligibility criteria.
The Government will provide a taxable grant covering 55% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £5,160 in total.
The grant will be increased from the previously announced level of 40% of trading profits to 80% for November 2020. This therefore increases the total level of the grant from 40% to 55% of trading profits for 1 November 2020 to 31 January 2020.
Find more information here.
The government has extended the temporary 15% VAT cut for the tourism and hospitality sectors to the end of March next year.
For those businesses that deferred their VAT bills, the government has introduced the New Payment Scheme, which gives them the option to pay back in smaller instalments.
For self-assessment taxpayers in financial distress, HMRC’s Time to Pay service has been extended for an additional 12-months. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
If you are concerned about being able to pay your tax due to Covid-19, call HMRC’s dedicated tax helpline on 0800 0159 559.
The UK Government’s Department for Business, Energy and Industrial Strategy also has a business support helpline: 0300 456 3565.
The Department for International Trade is working with partners on a series of SME Covid-19 seminars, which are designed to support UK businesses to get help, protect their business and save jobs. A full list can be found here.
A new FAQ section on business closures has been added to the business support website. Government advice is that people can travel to and from work, but only where the work they do absolutely cannot be done from home. With the exception of the organisations covered in the link above, the Government has not required any other businesses to close.
The Government’s portal for registration of offers of help can be found here: https://www.smartsurvey.co.uk/s/L5B32S/
The Department for Education, with the support of DCMS, has launched a new online learning platform The Skills Toolkit (www.gov.uk/theskillstoolkit). The platform offers a range of courses at all levels, from introductory to advanced, which were chosen in consultation with top businesses and education experts. It’s open to everyone, whether they have recently been furloughed and want to learn new skills, are out of work and looking to build up their CV, or if they’re just keen to keep their mind healthy and skills sharp during this time.
Many collaborative tech projects have sprung up around the world in response to the pandemic. If you have the spare time or resource, find out how you can get involved.
Revisit our webinars on Navigating Coronavirus, specifically looking at fundraising seed to Series A, and post-Series A in a lockdown, and managing remote teams.
Thank you to our panelists Akriti Dokania (Octopus Ventures), John Spindler (Capital Enterprise), Eamon Carey (Techstars), Laura Connell (Balderton Capital), Maria Wagner (Beringea), Eze Vidra (Remagine Ventures), Ben Gately (CharlieHR) and Tessa Clarke (Olio) for their time and expertise
We recently held a webinar with leading figures in fintech and insurtech to look at the future of both industries and how both should respond to the Covid-19 pandemic. You can catch up in full, below.
Moderated by Gerard Grech, CEO of Tech Nation.
The UK tech and founder community is one of the most collaborative and supportive in the world. We are continuously humbled by the readiness of our community to pay it forward through our programmes, and know that generosity spreads far beyond Tech Nation sessions. So share your advice, your tips, and lend an ear to those in need.
If you’ve created or come across any bespoke tech industry resources that you think others would find useful, do share them with us @TechNation.
