COVID-19 Government support and grants available in 2021

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Government grants will continue for the foreseeable future and certainly until March 31, 2021.

The main grants and supports available now are outlined below.

Please contact one of the team if you need help in claiming any of these.

Coronavirus Job Retention Scheme (CJRS)

The CJRS will remain open until March 31, 2021.

From November 1, 2020 employers can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month.

Employers can claim for employees who were employed on October 30, 2020, as long as they have made a PAYE RTI submission to HMRC between the March 20, 2020 and October 30, 2020, notifying a payment of earnings for that employee.

This may differ where they have re-employed an employee after September 23, 2020.

All employers with a UK bank account and UK PAYE schemes can claim the grant.

Employers can furlough employees for any amount of time and any work pattern, while still being able to claim the grant for the hours not worked.

Employers might need to contribute towards the cost of their furloughed employees’ wages for these periods.

For periods from November 1, 2020, they will need to pay for the cost of employer NICs and pension costs.

Self-Employment Income Support Scheme Grant Extension (SEISS)

SEISS is available in the form of two further grants, each available for three-month periods covering November 2020 to January 2021 and February 2021 to April 2021.

To be eligible for the grant extension, self-employed individuals, including members of partnerships, must:

  • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
  • declare that they intend to continue to trade and either:
  1. are currently actively trading but are impacted by reduced demand
  2. were previously trading but are temporarily unable to do so

The extension will last for six months, from November 2020 to April 2021.

Grants will be paid in two lump sum instalments, each covering a three-month period.

The third grant will cover a three-month period from November 1, 2020 until January 31, 2021.

The Government will provide a taxable grant calculated at 80% of three months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total.

Coronavirus Business Interruption Loan Scheme

The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million.

The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.

The scheme has been extended and is open until January 31, 2021.

Click here for further information.

The Coronavirus Large Business Interruption Loan Scheme

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) provides financial support to larger businesses affected by coronavirus (COVID-19).

The scheme helps medium and large sized businesses to access loans and other kinds of finance up to £200 million.

The government guarantees 80% of the finance to the lender and is open to applications until January 31, 2021.

Click here for further information.

Bounce Back Loans

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.

The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.

After 12 months, the interest rate will be 2.5% a year.

The scheme is open to applications until 31 January 31, 2021.

Click here for further information.

The Future Fund

This scheme will issue convertible loans, between £125,000 to £5 million, to innovative companies which are facing financing difficulties due to the coronavirus outbreak.

The Future Fund provides government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.

These convertible loans may be an option for businesses that rely on equity investment and are unable to access other government business support programmes because they are either pre-revenue or pre-profit.

The scheme is open for applications until  January 31, 2021.

Click here for further information.


Regional and local supports

There are regional and local supports also available and you can find details of these on the Government website.

When you click the “Start now” button you are immediately asked whether you are based in England, Scotland, Wales or Northern Ireland. 

Click here for further information.