April 8 coronavirus update for businesses

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Firms struggling to access government support

The second British Chambers of Commerce Coronavirus Business Impact Tracker reveal that most businesses have not yet successfully accessed the government’s Coronavirus Business Interruption Loan Scheme (CBILS) and the grants for small businesses.

Of the more than 1,000 respondents, just 1 per cent of firms had successfully accessed CBILS and 7 per cent are receiving grants.

The tracker also showed that 57 per cent of firms have three months cash in reserve or less, 6 per cent of respondents have already run out of cash. As a result, 37 per cent of respondents are planning to furlough between 75 to 100 per cent of their workforce over the next week.

BCC director general Dr Adam Marshall said: “Our latest data shows that many businesses face a cliff-edge scenario, either at the end of this month or over the course of the next quarter. We’ve seen a big jump in the number of firms furloughing staff, and many are now starting to apply for access to government loan and grant schemes to keep themselves afloat. Yet our research suggests that support is only starting to reach firms on the ground.

“We are pleased that the chancellor is listening and responding to our calls to strengthen the existing support. Improvements to the CBILS scheme should help more businesses get access to the cash they need over the coming days and weeks. This could be the difference between survival and insolvency for many firms."

According to the Lancashire Telegraph, Blackburn with Darwen Council has processed more than 1,100 applications for payment out of a total of 4,175 qualifying businesses. Hyndburn Council is sending out £18.5m to 1,618 businesses qualifying for a £10,000 grant and 92 eligible for the £25,000 sum. Burnley Council has processed 516 grants which businesses should receive in the next 10 days, out of 2,186 eligible claimants. Ribble Valley Borough has approved £1m in grants so far, and has identified 1,600 qualifying firms. Pendle Council has received more than 1,000 applications from local businesses, of which 170 have been processed. Rossendale Borough has identified 1,700 qualifying properties for the two grants.

Councillor Matthew Brown, leader at Preston City Council, added: “It’s a worrying time for many people and, quite rightly, business owners are looking for help and support during this crisis and as your council we want to get the message out. I would encourage all eligible Preston business owners - both small businesses and those in the retail, leisure and hospitality sectors - to visit our website and complete the form for this vital support grant, which I’m sure will be very welcome in this current uncertainty.”

Preston City Council support

Praetura arranges £500,000 working capital for construction firm

Blackburn-based Praetura Asset Finance has seen its first refinance relief funding deal of the coronavirus period go live.

Cash reserves at the civil engineering groundworks company had already been strained by the poor weather conditions in the latter part of 2019, pausing construction projects and delaying invoices being paid. The onset of the effects of the coronavirus pandemic made the necessity to bolster the company’s cash reserves more urgent. Through a refinance agreement, Praetura Asset Finance were able to unlock the value from 19 of the company’s assets, which provided a refinance relief funding package of £500,000.

Ric Simmons, sales director at Praetura Asset Finance, said: “Over recent years, asset refinance has become an increasingly popular funding option for SMEs. But there are many that don’t know that releasing the value of the equity in their vehicles, machinery and equipment and turning that into working capital, is an option."

Forum wants further help for pubs

The Forum of Private Business is lobbying the Chancellor to reduce Beer tax as part of a package to make the leading PubCo’s give their pubs’ tenants a rental holiday whilst they are closed during the coronavirus lock down.

Ian Cass, managing director of the Forum, said: “Our usual stance has been to resist a reduction in the beer tax as this would predominantly be for the benefit of the PubCo’s and not the pubs themselves. But in these difficult times when most tied pub tenants are still being required by the PubCo’s to pay their rent, notwithstanding that the pubs are closed, any incentive that can be introduced to persuade the PubCo’s to give tenants a rental holiday is worth exploring.”

Burnley charity appeals for help

Emmaus Burnley, a charity that provides a home, work and individual support to people who have experienced homelessness and social exclusion, is asking for support to ensure that its work can continue. It supports up to 24 formerly homeless people by providing them with a stable home and meaningful work for as long as they need it.

Stephen Buchanan, director at Emmaus Burnley, said: "Our charity stores are closed but the support we offer to formerly homeless people continues. It is vital we do all we can to ensure everyone’s wellbeing and keep a roof over their head. We know it’s tough for everyone at the moment, but any gift you can spare will help us get through this difficult time. A donation from you will help Emmaus Burnley continue its vital work during the current COVID-19 emergency and beyond."

Emmaus emergency appeal

New fund for tourism organisers

Tourism minister Nigel Huddleston has launched a £1.3m emergency fund to support local tourism organisations throughout the coronavirus outbreak

He said: "At the moment it is of utmost importance that everyone plays their part and stays at home to protect the NHS and save lives. However, we also need to act now to help the tourism sector be as strong as possible when we get through this pandemic. Destination Management Organisations will play a vital role in this recovery and this fund will support their essential work."

VisitEngland acting CEO Patricia Yates said: "Our intention is to get the funds out quickly to DMOs with a light touch application process as we work with them in recovery planning, to ensure that tourism rebounds and once again becomes one of the most successful and vibrant sectors of the economy."