COVID 19 Business Help Guide - Flipbook - Page 6
All commercial tenants in England,
In addition, the government has announced a series of support measures.
Wales and Northern Ireland are
SMEs with an annual turnover of less than £45m can apply for the government’s
eligible for protection from eviction
Business Interruption Loan Scheme which offers an interest free loan of up to £5m.
if they cannot pay their rent because
of COVID-19. This means no business
will automatically forfeit their lease
and be forced out of their premises if
they miss a payment up until 30 June.
There is the option for the government
Businesses will be able to borrow for up to six years however, you will need to prove
you are a viable business that only needs the extra support because of these shortterm difficulties. Forty lenders have signed up to the scheme and you should apply
directly to your own bank in the first instance. Full details can be found here.
to extend this period if needed.
Large business advice
Nevertheless, you are advised to
Larger companies with a turnover of more than £45m can apply to the Bank of
speak to your landlord as soon as
England’s Covid Corporate Financing Facility, essentially a government promise to
possible if you will struggle to pay
buy short term IOUs. Again, your business must have a high credit rating and be in a
your rent. In addition, you are advised
strong financial position.
this is not a rental holiday and
the provision will only delay
the right of forfeiture; it will
not affect a landlord’s right to
claim forfeiture or recover rent
after the three-month period
ends. The government has
made clear that the negotiation
is now with lessee and landlord
to reach a solution on payment.
The two main types of
insolvency are liquidation and
bankruptcy. The government is
looking at changing insolvency
Turnover no more
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laws to prevent companies that
can’t meet their debts being
forced to file for bankruptcy.
It is hoped and expected
that The Insolvency Service
will introduce rapid reforms
to relax existing insolvency