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The COVID-19 pandemic has been sweeping the UK for more than a year to date. With new strains appearing, even with a vaccine it could be quite some time before many of the measures that have been put in place to slow the tide will be lifted.  

Even when restrictions are lifted, many small business owners believe that at least some of the changes they have been forced to make will be permanent. One survey found that almost half (44%) of small business owners think changes such as remote working, a greater dependence on ecommerce, and changing supply chains are alterations that will not go away once the virus is under control. Some more statistics for small businesses and how they have been affected by the pandemic can be seen in the infographic attachment. 

Thomas Noel Collister Jackson is a member of the Federation of Small Businesses, which works to ensure the voices of small business owners are heard by the government and policies consider the needs of small businesses. 

Business Closures and Restrictions 

The UK is currently in its third national lockdown, meaning many small businesses are being forced to close for several months, having already lost a lot of business throughout the spring and autumn of 2020. All non-essential businesses are currently barred from remaining open to the public, although online sales are permitted.  

The government has implemented several financial packages aimed at assisting businesses in getting through this time. However, only a relatively small percentage have so far qualified for assistance such as government-backed loans and many others are struggling to find alternative sources of finance. 

The embedded PDF explores some of the ways in which small businesses have had to adapt their operations in an attempt to stay afloat over the past year. 

Coronavirus Job Retention Scheme and Job Support Scheme 

One of the packages the government has put in place to try and help businesses and employees is the coronavirus job retention scheme. Under this scheme, businesses forced to close their doors during lockdown can apply for the government to pay up to 80% of the wages of each employee that is furloughed, with the company retaining responsibility for paying pension contributions and National Insurance.  

The job support scheme is designed to follow on from this and provide financial support to top up the wages of employees who are returning to work but whose regular hours have been cut. This scheme will hopefully allow businesses that are reopening but whose custom is still in decline to retain their employees on a part-time basis until such a time as business returns to normal levels. 

A definition of furlough for employers can be found in the short video attachment to this post. 

Self-Employment Income Support Scheme 

Individuals who are self-employed can apply for funding in the form of a series of grants, which have been extended to cover the period up to the end of April 2021. These grants are designed for self-employed individuals who are still trading, but have suffered financial losses due to reduced trading as a direct result of coronavirus. 

Bounce Back Loan Scheme 

Small and medium-sized businesses in the UK may be eligible for the Bounce Back Loan Scheme, allowing them to borrow up to £50,000. Eligible businesses must have begun trading prior to the 1st of March 2020 and have experienced a negative impact due to the COVID-19 pandemic. 

There are several other financial schemes available to certain types of business in the UK, full details of which are carried on the website for the Federation of Small Businesses.