As the Coronavirus (COVID-19) situation continues to develop the EOA is here to listen, signpost and support our members and the EO Community.
We are using our links with Government, CBI, ICAEW, the Inclusive Economy Partnership, the Managing Partners Forum and others – to ensure that our members are able to access the most up to date information and guidance for businesses.
On this page we’ll be recording the most frequently asked questions by members of the employee owned community, as well as providing links to further useful resources for the EO community.
Click here for further information on our series of EOA Better Together Webinars that we are running to support our members and the EO Community during this crisis.
We’re here to listen, signpost and support you to continue engaging, innovating and sharing best practice to make sure the EO community is as resilient as possible during the most economically challenging times since the Second World War.
We’ll offer daily updates on Twitter, on our website and in the FAQs here. Plus monthly updates via email. Members can also log in to the EO Hub forum to create discussions on EO related actions and activity relating to Coronavirus.
You can find contact details for the EOA team below:
Oliver Smith – Head of Membership 07964 084671 | Oliver.Smith@employeeownership.co.uk
Hannah Welch – Membership Development Manager (01482) 692540 | Hannah.Welch@employeeownership.co.uk
Keely Lead - Head of Communications and Marketing 07432 288107 | keely.lead@employeeownership.co.uk
Anne Richardson – External Communications and Partnerships Executive (01482) 692544 | Anne.Richardson@employeeownership.co.uk
Ross Herring – Digital Communications Executive (01482) 692543 | Ross.Herring@employeeownership.co.uk
Lisa Steel – Head of Operations and Finance (01482) 692535 | lisa.steel@employeeownership.co.uk
Annabelle Lewis – Operations and Finance Executive (01482) 667122 | Annabelle.Lewis@employeeownership.co.uk
Charlie North – Operations and Finance Apprentice (01482) 692537 | Charlie.North@employeeownership.co.uk
A full range of business support measures have been made available to UK businesses and employees. The link below helps businesses find out how to access the support that has been made available, who is eligible, when the schemes open and how to apply.
The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak. The scheme is a part of a wider package of government support for UK businesses and employees.
CBILS has been significantly expanded along with changes to the scheme’s features and eligibility criteria. The changes mean even more smaller businesses across the UK impacted by the coronavirus crisis can access the funding they need.
Importantly, access to the scheme has been opened up to those smaller businesses who would have previously met the requirements for a commercial facility but would not have been eligible for CBILS. Insufficient security is no longer a condition to access the scheme.
Read more at the Government’s Business Support website.
Please note that as of 2nd November, the Government has announced that the Coronavirus Business Interruption Loan Scheme (CBILS) will be extended until 31 January 2021.
British Business Bank operates CBILS via its accredited lenders. There are over 40 of these lenders currently working to provide finance.
These include: high-street banks, challenger banks, asset-based lenders, smaller specialist local lenders. The type of finance they offers varies.
A list of them can be found here.
Please use the relevant filters on the page to find providers who offer the type of finance you are seeking.
Please note that as of 2nd November, the Government has announced that the Coronavirus Business Interruption Loan Scheme (CBILS) will be extended until 31 January 2021.
CBILS gives the lender a government-backed guarantee for the loan repayments to encourage more lending. The borrower remains fully liable for the debt. Under the scheme, personal guarantees of any form will not be taken for facilities below £250,000.
For facilities above £250,000, personal guarantees may still be required, at a lender’s discretion, but: recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied; a Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBILS-backed facility.
Please note that as of 2nd November, the Government has announced that the Coronavirus Business Interruption Loan Scheme (CBILS) will be extended until 31 January 2021.
Under CBILS, the definition of SME is confined to the turnover of an Applicant (or an Applicant’s group), which must not exceed £45 million. The Borrower cannot be an individual other than where the individual is a sole trader or a partner in a partnership and is acting in a business capacity.
More information is available here.
Please note that as of 2nd November, the Government has announced that the Coronavirus Business Interruption Loan Scheme (CBILS) will be extended until 31 January 2021.
CBILS is backed by the British Business Bank. The scheme has a number of accredited lenders. Applications are handled via the lenders.
Details of the participating lenders can be found here
Please note that as of 2nd November, the Government has announced that the Coronavirus Business Interruption Loan Scheme (CBILS) will be extended until 31 January 2021.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) will ensure that more firms are able to benefit from government-backed support during this difficult time. It provides a government guarantee of 80% to enable banks to make loans of up to £200 million to firms with an annual turnover of between £45 million and £500 million.
Loans backed by a guarantee under CLBILS will be offered at commercial rates of interest.
On May 26 2020 the government extended the maximum loan size available through the Coronavirus Large Business Interruption Loan Scheme from £50 million to £200 million.
Changes brought in under this expanded scheme mean companies receiving help through CLBILS and the Bank of England’s Coronavirus Corporate Financing Fund will be asked to agree to not pay dividends and to exercise restraint on senior pay.
Please note that as of 2 November, the Government has announced that the Coronavirus Large Business Interruption Loan Scheme (CLBILS) will be extended until 31 January 2021.
The new Covid-19 Corporate Financing Facility (CCFF) means that the Bank of England will buy short-term debt from larger companies. This will support companies which are fundamentally strong, but have been affected by a short-term funding squeeze. It will also support corporate finance markets overall and ease the supply of credit to all firms. The scheme will be funded by central bank reserves – in line with other Bank of England market operations. It will operate for at least 12 months, and for as long as steps are needed to relieve cash flow pressures on firms that make a material contribution to the UK economy.
Companies – and their finance subsidiaries – that make a material contribution to the UK economy are able to participate in the facility.
In order to access the CCFF, you will need to contact your bank. It is important to note that not all banks issue commercial paper. If your bank does not issue commercial paper, UK Finance will provide a list of banks that are able to assist.
More information is available on the Bank of England Website.
Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.
This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’. HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant.
The Coronavirus Job Retention Scheme is being extended until 31 March 2021. 30 November 2020 is the last day employers can submit or change claims for periods ending on or before 31 October 2020.
All of the current available information indicates that all UK businesses are covered, this would include Employee Owned businesses.
Further information is available at https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme
The current understanding of the guidance available is that employees must not work during the period of furlough laid out in the Job Retention Scheme. However, employers can furlough employees for any amount of time and any work pattern, while still being able to claim the grant for the hours not worked.
Employees are eligible to take part in volunteering or training as long as it does not provide services to or generate revenue for, or on behalf of your organisation.
Find out more here: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
No. This scheme ensures that workers will continue to be employed and paid a proportion of their wages and therefore are not entitled to redundancy pay.
Source: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
The Coronavirus Statutory Sick Pay Rebate Scheme went live on May 26 2020, via an online service for SME employers - with fewer than 250 employees - to recover Statutory Sick Pay (SSP) payments they have made to their employees.
Further information is available HERE
Previously, employees hired after 28 February 2020 could not be furloughed or claimed for in accordance with the Job Retention Scheme.
However, the latest guidance has extended the scope of the scheme, full details of who can be placed into furlough are available here: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme#employees-you-can-claim-for
It is unlikely that Furlough would be included in lists of which particular steps a company's directors may take only with prior consent from the trustees.
However, you should refer to any such list your company has, both the directors and the trustees should ensure they are familiar with it so that if any action on it is contemplated, trustee agreement is sought as best practice.
Further information is available HERE
The government has released a series of guidelines for working safely during the pandemic, updated recently to refer to the latest guidance and lockdown situation: https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19
Mind has a wellness action plan which is available for you to download. It provides a wealth of information for those experiencing mental health concerns and can also be used as a proactive tool to map out what needs to be in place for you to be mentally well at work.
Further information is available HERE
Mind has created a guide which covers how you can manage a colleague who is experiencing a mental health problem and how you can support them. It also cover’s information on how you can support staff who are currently well, as a proactive tool to promote and maintain their mental health at work
Further information is available HERE
There a number of organisations you can direct them to which offer support. Step Change has a dedicated webpage which covers many different aspects of managing personal finance.
Turn to Us is another charity which has a wealth of information about guidance on benefits