The UK government’s advice is changing day by day, and in the most recent announcement (23 March), further restrictions were placed on personal, commercial and communal activities.
It is likely that all businesses in all sectors (other than perhaps those deemed “essential”) will face cash flow issues as a consequence of the restrictions that are now in place in the UK restricting the movement of people and forcing the closure of non-essential shops.
In this note, we focus mainly on what would appear to be the reasoning behind the two main business funding schemes announced, the details of which have emerged in the week commencing 23 March 2020 – the Covid Corporate Financing Facility (CCFF) and the Coronavirus Business Interruption Loan Scheme (CBILS) – as well as touching on other business reliefs and measures for individuals.
Our quick guide will aid you in considering the financial health of your business. The guide will help you assess and identify the key risks and understand what tools are available to determine whether you can or should continue trading, and what form trading should take.
From a recent survey we conducted, more than 40% of businesses had not yet considered the financial support packages being made available from the government. Our quick guide sets out what financial assistance and other options outside of those on offer from the government are available to lend support to businesses.
As we see more and more businesses having to close doors or adapt to a new set of rules, we set out some of the issues we anticipate for those needing to shut down, yet preserve their businesses at least until the lockdown is over.
Other Useful Information
This is an update to the alert on the restrictions announced by the UK government which we published on 25 March 2020.
An update on the progress seen following the launch of the CCFF scheme and the CBILS.
Aside from managing the practicalities that COVID-19 places on business operations, directors must also consider, in this context, their duties as directors. This note is a useful reminder of what those duties are and how COVID-19 could impact on those.
How Else Can We Support You
- For the latest updates on managing business risk during COVID-19, subscribe to Restructuring GlobalView.
- Sign up to our dedicated resource centre, brought to you by a multidisciplinary team, to keep you informed of the latest developments and provide comprehensive insight for businesses on the legal, regulatory and commercial implications of COVID-19.
- We invite you to self-assess your contingency arrangements using our complimentary online tool, with the option to receive a contingency planning template.