All eyes on online portal as companies begin to claim furlough cash
The Government is set to open its online portal for businesses to claim grants to pay the staff they have furloughed today (Monday 20 April).
Any firms which have furloughed employees because of the ongoing Covid-19 pandemic can apply for a grant that covers 80% of their usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions.
The move comes after Chancellor Rishi Sunak launched a new initiative to help larger businesses affected by the ongoing Covid-19 pandemic.
The new Coronavirus Large Business Interruption Loan Scheme (CLBILS) aims to provide the UK’s larger employers with access to temporary emergency funding. It means firms with turnover of between £45m and up to £250m can borrow up to £25m, while firms with turnover of more than £250m can borrow up to £50m.
The scheme provides lenders with a Government-backed partial (80%) guarantee against the outstanding facility balance and is open to businesses which have not received a facility under the Bank of England’s Covid Corporate Financing Facility.
It will be available through a range of lenders and partners accredited by the British Business Bank.
Commenting on the portal’s launch, Scott Knowles, chief executive of East Midlands Chamber (Derbyshire, Nottinghamshire, Leicestershire), said: “The opening of the Coronavirus Job Retention Scheme will be welcomed by affected businesses, which will now be able to start accessing the financial support they need to pay staff and protect jobs.
“While the Government deserves credit for the way it has responded to the current crisis by introducing a substantial package of measures to provide the financial support that businesses need, its focus must now be on ensuring it is delivered as quickly, smoothly and efficiently as possible so affected employees can be paid without delay.”
On the CLBILS, he said: “The UK’s larger businesses are facing different but no less critical pressures to their SME counterparts, so this latest intervention, provided it delivers what’s intended, will provide welcome relief.
“Cash flow is the lifeblood of any business, so ensuring that credit and funding is available to those firms which need it most is what will help keep them ticking over until we reach the point where the economy can fully reboot.”
