The plethora of economic policy commitments to support business in the UK and the US in the face of COVID-19 can be difficult to navigate. Our lawyers recently held a webinar in conjunction with PLI to provide an overview of the various support schemes implemented in the UK and the US, focusing on UK schemes such as the Coronavirus Business Interruption Loan Scheme (“CBILS”); UK Coronavirus Job Retention Scheme (aka Furlough Scheme); the COVID Corporate Financing Facility (“CCFF”); and on Financial Conduct Authority (“FCA”) reforms and working capital assistance for UK listed companies. It also considered emergency relief measures in the US, including the Federal Reserve’s Paycheck Protection Program Liquidity Facility.

Continue Reading COVID-19: UK and US Economic Support Mechanisms

As we continue to revise and update our Comparison of Economic Support Measures being introduced by governments around the world to address the impact of the COVID-19 pandemic, we are starting to see some key trends emerge. In our most recent update, published today, we observe:

  • an increase in measures designed to protect those sectors

Although it is uncertain what the likely long-term impacts of the pandemic on the development industry will be, the short-term impacts are clearly significant.

The real estate development industry is looking to the Government for immediate relief in the following areas:

  • automatic extension of the deadline for commencement of development under planning permissions;
  • the introduction

Successive governments have announced a plethora of mechanisms to support businesses though the effects of COVID-19. To date, this has been done primarily on a country-by-country basis, leading to an array of different schemes across the EU and in other jurisdictions.

This is a summary of the economic support mechanisms currently available in various jurisdictions

We previously provided an overview of the UK Government support schemes in respect of COVID-19. The package of measures is evolving rapidly.

Here we provide an update on:

  • Changes to the Coronavirus Business Interruption Loan Scheme (“CBILS”)
  • A new Coronavirus Large Business Interruption Loan Scheme (“CLBILS”).

Changes to the Coronavirus Business Interruption Loan Scheme (“CBILS”)

Background

CBILS “went live” on 23 March 2020. It provides facilities of up to £5 million for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cash flow. It supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance. The scheme provides a lender with a Government-backed guarantee.

Originally, at the discretion of the lender, the scheme was able be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, the lender was required to establish a lack or absence of security prior to businesses using CBILS. If the lender could offer finance on normal commercial terms without the need to make use of the scheme, they would do so. Further, to be eligible for CBILS, the borrower was required to have an annual turnover of no more than £45m.


Continue Reading COVID-19 – UK Government Support Schemes (Update)

The UK’s Health and Safety Executive (“HSE”) has introduced new guidance which requires employers to make a report of new cases of COVID-19.  The consequences of failing to report can be very severe: an unlimited fine or even a custodial sentence in the most serious cases.

Read more on MayerBrown.com.

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If you wish

The fast-moving nature of the COVID-19 pandemic has seen a series of mechanisms deployed throughout Europe as governments seek to support businesses impacted by COVID-19.  To date, this has been done primarily on a country-by-country basis, leading to an array of different schemes across the EU.

Mayer Brown lawyers have produced a useful summary of

The UK Government today introduced emergency legislation to strengthen the UK’s response to the COVID-19 situation by way of the Coronavirus Bill (the “Bill”).

The new powers under the Bill are “temporary” (effective for a period of two years). However, it should be noted that this period can be extended by regulation from the Secretary of State for multiple six-month periods. This is likely to prove controversial. The Government envisages that the Bill will be passed by Parliament in the next few days, which means that the opportunities for debate and amendment by Parliament are very limited.


Continue Reading Covid 19 – UK Emergency Legislation