Reminder for funeral firms of Government help available
Hard pressed funeral directors facing a financial squeeze because of the current Covid-19 pandemic have been reminded about various loans, grants and schemes set up to help.
In recent meetings the NAFD set out the financial impact of the pandemic on funeral firms to Government and asked it to consider a number of ways to help businesses, including access to low or no-interest loans to assist small and medium-sized firms with short term cash flow problems during the pandemic.
Among a number of schemes, the Chancellor has announced 'Bounce Back' micro loans which can be for up to 25% of turnover, up to a maximum of £50,000, with the Government paying the interest for the first 12 months. The Government will guarantee 100% of the loan.
- The loans will be available from banks from 9am on Monday 4 May 2020.
- There will be no-forward looking tests of business viability
- No ‘complex eligibility criteria'. Businesses will have to complete a ‘simple, quick, standard form’
- For most firms, loans should arrive within 24 hours of approval
Further information is available at gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
There are a range of other grants and schemes available:
Coronavirus Job Retention Scheme – HMRC will pay employers a grant worth 80% of an employee’s usual wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage.
Coronavirus Business Interruption Loan Scheme – supports small and medium-sized businesses to access loans, overdrafts, invoice finance and asset finance of up to £5 million and up to six years.
Cash grants –£10,000 or £25,000 available for retail sector businesses. Your local authority will write to you if you are eligible.
Small Business Grant Funding – supports small businesses that already pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered relief. This is a one-off grant of £10,000 to eligible businesses. Your local authority will write to you if you are eligible.
Corporate Financing Facility – the Bank of England will buy short-term debt from larger companies. This will support companies that are fundamentally strong, but have been affected by a short-term funding squeeze.
Time to Pay – All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through the HMRC’s Time to Pay service.
More information on all these is available at gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19
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