Coronavirus: Financial support for businesses
While much of the government financial support available to businesses during the coronavirus outbreak has now been withdrawn, some schemes are still operating. Read on for more information.
Recovery Loan Scheme
The Recovery Loan Scheme helps give UK businesses ongoing access to finance as they recover from the economic impact of the COVID-19 pandemic.
The scheme can be used for any legitimate business purpose, including managing cash flow, investment and growth. It is designed to appeal to businesses that can afford to take out additional debt finance for these purposes.
RLS is scheduled to run until 31 December 2021 (subject to review). It is available through a range of lenders and partners accredited by the British Business Bank.
For more information, and details on how to apply, visit our Recovery Loan Scheme (RLS) page.
Pay As You Grow (PAYG)
PAYG enables businesses that have started repaying their Bounce Back Loans to:
- request an extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%
- reduce their monthly repayments for six months by paying interest only – this option is available up to three times during the term of their Bounce Back Loan
- take a repayment holiday for up to six months – this option is available once during the term of their Bounce Back Loan
As a borrower, you can use these options individually or in combination with each other. You remain responsible for repaying your Bounce Back Loan and fully liable for the debt.
Be aware that you’ll pay more interest overall if you use one or more of these options, and that the length of the loan will increase in line with any repayment holidays you take.
To learn more about these options, visit our Pay As You Grow (PAYG) page.
Hospitality VAT rate
For businesses in hospitality, accommodation and attractions, the Government has reduced the VAT rate to 12.5%. This will apply until 31 March 2022.
For more information, visit GOV.UK.
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