BUILDING LEGACIES COVID-19 BRIEFING – 20/05/2020
In today’s Bulletin we cover, the Coronavirus Future Fund, Coronavirus Grant Funding for SME’s via Local Authorities and clarification on Directors’ Remuneration & Share Dividends.
The Coronavirus Future Fund (CFF)
This new CFF scheme will issue convertible loans of between £125,000 and £5 million to innovative and creative sector companies which are facing financing difficulties due to the Coronavirus outbreak.
The CFF will open for applications on Wednesday 20 May 2020.
The CFF will provide Government loans to UK-based companies subject to at least equal matched funding from private investors.
These convertible loans may be a suitable option for businesses that typically rely on equity investment and are unable to access other Government business support programmes because they are either pre-revenue or pre-profit.
The CFF was developed by the Government and is being delivered by the British Business Bank. More detailed guidance is available on their website: British Business Bank website
The template Convertible Loan Agreement can be found here: Convertible Loan Agreement
Eligibility & Applications
Your business will be eligible if:
- It is UK-incorporated. If your business is part of a corporate group, only the parent company is eligible
- It has raised at least £250,000 in equity investment from third-party investors in the last 5 years
- None of its shares are traded on a regulated market, multilateral trading facility or other listing venue
- It was incorporated on or before 31 December 2019
- At least one of the following is true:
- half or more employees are UK-based
- half or more revenues are from UK sales
The CFF will open for applications on Wednesday 20 May 2020. How to apply
Coronavirus Grant Funding for SME’s via Local Authorities
Local Authorities have received and are distributing additional funding to support small and medium businesses in England during the Covid-19 crisis.
Each Authority has some discretion about what amounts of money can be distributed to which local businesses in their area. This covers 2 Coronavirus grant schemes:
- Small Business Grants Fund (SBGF) scheme
- Retail, Hospitality and Leisure Business Grants Fund (RHLGF)
How much does each Authority get?
You can find out how much money has been allocated to your own Local Authority by following this link:
This list shows the total amount of money that each Local Authority in England has:
- received from Central Government
- distributed to SMEs to date
As of 17 May, over £9.5 billion has been paid out to over 778,000 businesses.
Find out if your business is eligible to receive this or other funding
You should Contact your Local Authority to find out if your business meets their local support criteria and, if so, how much you may be eligible to receive.
We also recommend that you check to see if you may be eligible for other loans, tax relief and cash grants in case you’ve missed any previous opportunities.
Use the business support finder to see what support is available for you and your business.
Clarification on Directors’ Remuneration & Share Dividends
We are pleased to confirm that, despite some media speculation, organisations that have applied for the Coronavirus Job Retention Scheme (CJRS) and/or the Coronavirus Business Interruption Loan Scheme (CBILS) and/or the Bounce Back Loan Scheme (BBLS) will not be subject to any restrictions on Directors’ remunerations or limits on Shareholder dividends for the duration of these schemes.
STAY IN TOUCH AND GET HELP
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