Small business grant funding
The eligibility has now been updated to state that the person who according to the billing authority’s records was the ratepayer as at 11th March 2020 will receive the grant.
There is further information to state that where the local authority believes this to be incorrect, they can take reasonable steps to identify the correct ratepayer and withhold or recover the grant.
Any changes to the rating list (rateable value or to the hereditament) after the 11th March 2020, including changes which have been backdated to this date, should be ignored for the purposes of eligibility and local authorities are not required to adjust, pay or recover grants where the rating list is subsequently amended.
The funding should be paid to the local authorities by 1st April 2020.
Clients who have VAT payments due to HMRC between 20th March 2020 and 30th June 2020 will have until the end of the 2020/21 tax year to pay any liabilities accumulated during the deferral period. HMRC have advised that any direct debits set up should be cancelled in sufficient time to ensure the payment is not taken.
VAT returns will still need to be filed each month/quarter, even if the return falls within the deferral period.
We have been approved by a number of clients looking for help with the applications for such schemes. Our initial comments have surprised some clients in relation to the wording of the application forms from their banks.
Please be aware that although the Government are provided some guarantee to these loans, the onus is still on the borrower to repay this debt.
HSBC states that they will only lend to their customers and :
- You are liable for repaying 100% of the loan and HSBC will always seek to recover the outstanding balance from you and any security you, or any security provider on your behalf, has taken under the loan.
Lloyds bank states :
If you use the CBIL Scheme for all or part of your borrowing needs we:may still require a 100% personal guarantee along with a debenture when the borrowing is to be taken in the name of a limited company or LLP.
- will take a lending charge over any other allowable personal asset (e.g. investment property) or business asset (e.g. premises) you have, even if they do not presently have lending value based on normal commercial terms.
- will NOT take a charge over your personal private residence in respect of the CBIL borrowing as this is not permitted under the scheme rules
We will endeavour to keep you updated as changes to this information are announced.
If you have any queries regarding this information, please do not hesitate to contact us.