CEA COVID-19 Bulletin #6
Please click here for the latest COVID bulletin from the CEA. Lots of new issues in this one and updates to others. Government support is very much a moving target so please check up for any updates on the schemes you are planning to utilise.
The CEA is working hard to support our members through these unprecedented times. This includes:
- Coronavirus Business Interruption Loan Scheme (CBILS) – after pressure from a number of quarters, the lending criteria for CBILS was clarified/relaxed last week. Whilst small loans (up to £250k) need not now to be secured against assets or personal guarantees. However, the banks still have liability for 20% of the loan which is not underwritten by HMG, so it will be interesting to see if loans start to be agreed in the coming days. Our own MP, Kevin Hollinrake, is Chairman of the All Party Parliamentary Group on Fair Banking for Business. Kevin has asked for feedback from companies trying to access CBILS, or the version for larger company loans. ACTION REQUIRED – please tell us of any issues you have experienced trying to access a business loan with CBILS and we will request action from Kevin.
- COVID-19 bulletins (6 have now been issued). We have been able to supply clarification on some of the detail of the various government schemes and pick up on some additional issues of importance to members.
- Shut downs – monitoring our members. From our conversations, approximately 80% of member factories are substantially closed or set to close imminently. Reasons are split between health and safety concerns, supply chain issues and market collapse. Ironically, the Chinese market and sources of supply already seem to be recovering.
- Job Retention Scheme – the full details of the Scheme are not yet published. We are pressing for the full rules to be issued, even if the supporting HMRC portal follows at a later stage (currently promised for the end of this month). It is confi