COVID-19 SUPPORT: Daily Update – Monday 30 March 2020
Flexible Insolvency Rules
The Government has proposed emergency changes to the UK insolvency laws which will offer additional protection to businesses experiencing financial difficulties as a result of the Coronavirus outbreak. The changes, which were announced on 28 March 2020, will allow companies which need to undergo a financial rescue or restructure process to continue to trade and access raw materials. Wrongful trading provisions for company directors have also been temporarily suspended (which will operate retrospectively from 1 March 2020) to give company directors greater confidence to continue to trade during the crisis, without the threat of personal liability should the company ultimately fall into insolvency.
The new measures seek to provide greater flexibility and give businesses extra time to pay off their debts while continuing to trade. Full details of the above measures are expected to be published in due course.
Grant Funding for Welsh Businesses
Welsh Local Authorities have published details on how businesses in Wales can access grant funding. There are currently two forms of grant available to Welsh businesses; those in the retail, leisure and hospitality sectors with a rateable value between £12,001 and £51,000 will be eligible for a grant of £25,000, whilst all businesses that are eligible for Small Business Rates Relief and have a rateable value of £12,000 or less will be eligible for a £10,000 grant.
Unlike in England, where businesses will be contacted directly regarding their eligibility, Welsh businesses will need to check their Local Authority’s website for application details.
Funding Initiative for Technology Firms
NHSX has launched a £500,000 initiative to promote the development of digital solutions which can assist in supporting the elderly, vulnerable and self-isolating amidst the Coronavirus pandemic.
The “TechForce19” scheme launched on 23 March 2020 and challenges innovators to develop community-based solutions in mental health, remote social care, and staffing in the care and voluntary sectors. Competitive grants of up to £25,000 will be made available to companies who can demonstrate that they have working technology solutions that can be rolled out quickly and have the potential to be scaled-up nationally.
The application deadline for the initiative is 12pm on 1 April 2020.
Acuity Law’s Practical Solutions to Coronavirus-related legal issues
From today, we will be providing practical solutions and expert insights on the Coronavirus Crisis-based legal issues that our teams are advising businesses across all sectors. We’ll be covering everything from virtual AGMs to reviewing your banking terms and lease negotiations and much more besides. The situation changes by the hour so check out our daily bulletins for the very latest position and advice.
Please see our daily updated Financial Support Guide for Businesses for futher information- COVID-19 FINANCIAL SUPPORT FOR BUSINESSES
For more information on any of the points raised, please contact our corporate team.