Yesterday the UK government announced a number of significant measures to help UK small businesses as the negative impact of the COVID-19 continues to be felt. These measures include:

• Government-backed Loans – an initial £330bn of guarantees, equivalent to 15% of UK GDP, with further loans if needed. Loans are to enable businesses to pay their rent, salaries, supplies, purchase stock, etc.
• Coronavirus Business Interruption Loan Scheme – the amount business can borrow under the scheme has been increased from £1.2 million to £5 million. Financing will be accessible without interest for the first six months through the British Business Bank. The scheme will be available as of next week. Information on eligibility and access to the scheme can be retrieved here. 
• Mortgage Holiday – households who need help will get a three month mortgage holiday. To access the mortgage holiday, individuals must get in touch with their lender to discuss options. 
• Business Rate Holiday – firms with a rateable value of less than £51,000 will not have to pay business rates this year, as well as get grants of up to £25,000. In addition, the one year business rates holiday will apply to all firms in the hospitality and retail sectors. Further details, including on the lenders providing access to this scheme, will be announced in the coming days, and the scheme will be available from 23 March 2020.
• Support for tax payments – All businesses and self-employed individuals in financial distress, and with outstanding tax liabilities, may be eligible to receive support through HM Revenue and Customs’ (HMRC’s) Time To Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s Coronavirus helpline on 0800 0159 559.
• Small Business Rate Relief – grants up to £10,000 will be available to 700,000 of the smallest UK firms. Further information is available here. 
• Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19 – the Government will adopt legislation allowing SMEs and employers to reclaim SSP paid for sickness absence due to COVID-19. The eligibility criteria for the scheme will be as follows:
  • this refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19
  • employers with fewer than 250 employees will be eligible - the size of an employer will be determined by the number of people they employed as of 28 February 2020
  • employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19
  • employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note
  • eligible period for the scheme will commence the day after the regulations on the extension of Statutory Sick Pay to those staying at home comes into force
  • the Government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible

Separately, the UK Financial Conduct Authority is telling banks and investment managers to take a flexible approach to loan repayments, fees and penalties and is planning to unveil new measures to help on mortgages. Cash withdrawal limits will also be raised.

The eBay Government Relations team will continue to monitor and inform your about these developments.