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The Government’s fiscal measures introduced in response to the shock of the pandemic – in particular the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS) – have helped to bridge the revenue gap for many viable businesses that might have otherwise found themselves in jeopardy.

• A survey of SME workers[i] has found that close to 2 out of 3 people (65%) have suffered from mental health issues as a direct outcome of the pandemic, with women suffering marginally more than men.

While the government’s support measures have undoubtedly helped businesses with their cash flow during the Covid-19 crisis, this rescue action could impact the lending market moving into 2021 and beyond.

• A Personal Guarantee will be unavoidable for many small business owners in 2021, as coffers run dry:

• -> New COVID Loan Programme may reinstate personal guarantees
• -> 22% of small businesses sustained by salary sacrifice or personal savings

• In a new survey of SME workers, by Purbeck Insurance Services, provider of the UK’s only Personal Guarantee Insurance, found: -
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• -> 26% say loyalty has improved 
• -> 38% feel positive about career prospects 
• -> 12% of bosses sacrificed salary to support business 

• -> 29% want to kiss goodbye to Zoom 

A snap survey of people working in small businesses across the UK^[i] has found that 65% have made a deliberate decision to support other small businesses during the pandemic and plan to do so this Christmas as far as possible. Marginally more women than men are key advocates of local, small businesses.

With talk of a potential vaccine roll-out gathering pace, we can begin to consider what business life will look like after COVID-19. One thing’s for sure, it’s going to be markedly different from what life looked like before the pandemic, with some people dubbing the next phase the ‘new normal’.

• Small business owners facing failure also face increased risk of losing their home.

• The value of personal guarantee backed business loans to SMEs during the pandemic has risen on average by 45% according to analysis by Purbeck Insurance Services, provider of the UK’s only Personal Guarantee Insurance.

No company director wants to have to face up to the prospect of their business becoming insolvent. But directors have a duty to act in a certain way, in accordance with the relevant legislation, should their company find itself in a position where it can no longer pay its debts.