COVID-19: Practical guidance for our rural and farming clients #16

Join us on Friday 26 June at 9am for our ‘Virtual Breakfast’ with our Head of Rural, Andrew Vickery along with guest panellist Victoria Read, Relationship Director for South West Agricultural at Lloyds Bank.

Andrew and Victoria will answer your questions on COVID-19 finance, banks and funding and Victoria will give her take on the business implications and opportunities for farmers and rural businesses.

You are welcome to submit questions beforehand to marketing@om.uk or during the event.

Click here to register for our ‘Virtual Breakfast’.

This week we will again be using Zoom instead of Microsoft Teams. Once you register for the event, a link will be sent to your email for entry.  If you have any problems registering or accessing the event, please let us know by contacting marketing@om.uk.

Up to £2,500 per month direct financial support for self-employed individuals.

• You must have filed a 2019 self-assessment tax return, if you haven’t done so you will be ineligible to access this scheme
• This isn’t a loan and therefore you don’t have to repay
• Only open to those with total self-employed earnings below £50,000;
• and where those earnings account for more than half of their total income
• The grant is worth 80% of monthly self-employed profits with a cap of £2,500 per month
• For individuals trading in partnership it’s their share of partnership trading profits that must be below the £50,000 limit
• This grant is available for those who are adversely affected by COVID-19
• A second and final grant can be claimed in August, this will be worth 70% of average monthly trading profits for three months capped at £6,570 total over three months
• The second grant is for those who continue to be or are newly adversely affected by COVID-19. You don’t need to claim the first grant to claim the second
• This grant will count towards EU state aid limit *
• This grant will not count towards De minimis aid limit **
• If a business makes an overall profit once the grant income is included, it will be subject to tax.

Click here for the full detail on the Self-Employment Income Support Scheme

Up to £25,000 grant available for businesses.

• Businesses must operate in the retail, hospitality and leisure industry
• Businesses must have a rateable value between £15,000 and £51,000 on 11 March 2020
• Businesses must match qualification criteria on 11 March, only exceptional circumstances will be considered for the grant and at the discretion of the relevant local authority should criteria not be met on this date
• This grant will count towards EU state aid limit *
• This grant will not count towards De minimis aid limit **
• If a business makes an overall profit once the grant income is included, it will be subject to tax.

Click here for the full detail on the Retail, Hospitality and Leisure Grant Fund

Up to £10,000 for any small business.

• Only available for non-agricultural diversification activities
• Businesses must have a rateable value of less than £15,000 on 11 March 2020
• Businesses must match qualification criteria on 11 March, only exceptional circumstances will be considered for the grant and at the discretion of the relevant local authority should criteria not be met on this date
• This grant will not count towards EU state aid limits *
• This grant will count towards De minimis aid limit **
• If a business makes an overall profit once the grant income is included, it will be subject to tax.

Click here for the full detail on the Small Business Grant Fund

Up to £25,000 available for businesses who fall outside the qualification for other grants.

• For businesses who do not qualify for Retail, Hospitality and Leisure Grant, the Small Business Grant or the Dairy Hardship Fund
• For businesses who don’t pay business rates
• Businesses apply direct to their local authority who are individually responsible for allocation, design and prioritisation of funding this grant
• This grant will count towards EU state aid limits *
• This grant will count towards De minimis aid limit up to and including £10,000 **
• If a business makes an overall profit once the grant income is included, it will be subject to tax.

Click here for full detail on the Local Authority Discretionary Top Up Grant Fund

Up to £50,000 loan available.

• For small and medium-sized businesses
• Borrow between £2,000 and up to 25% of turnover to a maximum of £50,000
• 100% loan guarantee from the government
• No fees or interest to pay for 12 months
• Post 12 months, interest rate 2.5% a year
• Length of loan, six years, no repayment due for first 12 months
• Businesses must have been adversely impacted by COVID-19
• Businesses can’t apply if they are already claiming under CBILS, CLBILS, Corporate Financing Facility
• This loan will count towards EU state aid limits *
• This loan will not count towards De minimis aid limit **

Click here for full detail on the Bounce Back Loan Scheme and list of lenders

Helps small and medium sized businesses to access loans and finance up to £5 million.

• 80% government guarantee to finance the lender
• Government pays interest and any fees for up to 12 months
• Businesses must have an annual turnover of up to £45 million to qualify;
• and have been adversely affected by COVID-19
• Confirmed not classified as a business in difficulty on 31 December 2019
• Loan is for up to three years for overdrafts and invoice finance facilities
• Loan is for up to six years for loans and asset finance facilities
• Loan not applicable for banks, insurers, reinsurers, public-sector bodies, state-funded primary and secondary schools
• This loan will count towards EU state aid limits *
• This loan will not count towards De minimis aid limit **

Click here for full detail on the Coronavirus Business Interruption Loan Scheme and list of lenders

Helps medium and large sized businesses to access loans and finance up to £200 million.

• 80% government guarantee to finance the lender
• Business must have been adversely affected by COVID-19
• Business must have an annual turnover of over £45 million to qualify
• If businesses borrow over £50 million there must be restrictions on dividend payments, senior pay and share buy-backs during the period of the loan
• The loan is available from three months to three years.
• This loan will count towards EU state aid limits *
• This loan will not count towards De minimis aid limit. **

Click here for the full detail on the Coronavirus Large Business Interruption Loan Scheme and list of lenders

Up to £10,000 fund to help England’s dairy farmers impacted by COVID-19.

• Payment calculated at 70% of dairy losses from actual milk sales during April and May
• Losses will be calculated by comparing the average base price (excluding adjustments) in February and April 2020
• Fund administered by the Rural Payments Agency (RPA)
• This fund will count towards EU state aid limits *
• This fund will not count towards De minimis aid limit **
• Deadline midnight Friday 14 August 2020.

Click here for the full detail on the Dairy Response Fund 2020