Since the emergence of COVID-19, many businesses and entrepreneurs have been affected. Some have completely shut their operations, while some are facing difficulties, having close to nothing to trade with. With the stipulated lockdown restrictions and pandemic effects, it has been hard on these entrepreneurs. However, David Azzato confirms that there is light for these entrepreneurs. The government has heard their cries and allocated loans to help them cushion their businesses. These loans are available, whether one is still operational, or has shut their business.
Even though the country is coming from a national lockdown, businesses are not operating the same. There are more than two million entrepreneurs and all are affected by the pandemic. Therefore, Government Ministries are set to roll out plans to ensure that businesses are operating usually to return the country to its economic stability. Relief programs have been rolled out even for those who depended on dividend payments, even though there were hurdles to come to this conclusion.
David Azzato confirms that the government has rolled out support for the self-employed. These include sole traders and directors of limited companies. The relief that the government has provided is in the form of cash grants, tax relief, and loans. Business interruption loan is available for both small and large businesses that are shut or still operational. Any business that was affected by COVID-19 is allowed to apply for this loan. For the self-employed, there was support rolled out by the government. They are guaranteed relief in taxes besides access to loans.
For the employed, the government ensured that they continued to get paid through the retention scheme. Tax relief and business rates relief for employers have made it easier for businesses to ensure that their employees are paid with ease, even though production has reduced during the pandemic. These government-issued loans are available for any entrepreneur, and the deadline for application is the end of January 2021. The requirements to apply for such loans are the business must be UK-based, and adversely impacted by COVID-19. An entrepreneur can have access to a loan of up to £5m. Such would encourage lenders to also participate in the scheme. The business interruption payment would pay the interest accumulated for the first 12 months and levied charges.
According to David Azzato, the challenges that entrepreneurs experience in the industry are many. Therefore, one can apply for different types of loans. For instance, one can apply for a term loan to help in the payment of regulars for a specific duration. Some overdrafts guarantee entrepreneurs a line of credit, and asset finance to help them purchase an asset for their businesses.
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