Sanwar Ali: UK Visas, work, business and coronavirus COVID-19

By Sanwar Ali

Monday’s announcement that the UK Government is from next week offering a hundred percent guarantee on loans to small businesses affected by coronavirus, must come as a huge relief to businesses around the Country and to many Tier 2 visa holders.  This should make it much easier for small businesses to meet the requirements for the Government backed coronavirus loan scheme.  Hopefully, this will also mean that many more businesses will be able to hold onto employees and not have to make them redundant.

New Coronavirus Loan Scheme with 100% Government guarantee for small businesses

Chancellor Rishi Sunak whose grandparents were from India, announced in the House of Commons on Monday that the new scheme for small businesses will start next week.  Loans up to the sum of £50,000 (limited to 25 percent of turnover) would be guaranteed a hundred percent by the UK Government.    

The current coronavirus loan scheme has been much criticised as many businesses had difficulty coming under the scheme.  It was also taking a long time for banks to process applications under the scheme.  Rishi Sunak had previously insisted that the Government would not accept a loan guarantee scheme a hundred percent guaranteed by the Government.   The new scheme will start next week.  Apparently it will be easy to apply for and loans should be agreed in days.  No capital and interest payments will need to be paid for the first twelve months.

The business lobby group the CBI, and the governor of the Bank of England, Andrew Bailey, had put intense pressure on the Government to offer a hundred percent guarantee under the Business Interruption Loan Scheme (CBILS).  

It should be noted that this fast and simpler scheme is for smaller businesses.  Larger businesses will need to come under the more cumbersome loan scheme with a 80 percent Government guarantee.  Sunak had the following to say.

 “We should not ask that ordinary taxpayers today and tomorrow to bear the entire risk of lending almost unlimited sums to businesses who may in some cases have very little prospect of paying those loans back and not necessarily because of the impact of the coronavirus.”

The "microloan scheme" would provide a "simple, quick, easy" solution, he went onto say.

UK migrants at greater risk of catching coronavirus

Many health care workers are migrants, with about 28 percent of doctors being migrants.  Currently working in healthcare is risky due to the coronavirus COVID-19 pandemic.  Migrants are also more likely to suffer financially due to coronavirus and are more likely to work in areas affected by the crisis such as in accommodation and the hospitality industry.  Migrants cannot claim many benefits that permanent residents and UK citizens can claim.  There have been calls for migrants to be able to claim the full range of benefits during the coronavirus pandemic.

Coronavirus and the future for Tier 2 visa migrants and others

There continues to be a great deal of uncertainty over the future economic outlook in the UK and other Countries.  Even if the “lockdown” in the UK is lifted after 7 May 2020, it may be a long time before things get back to normal.  The economic downturn may continue for some time meaning fewer opportunities for migrants and others.  Unfortunately, some temporary job losses are likely to become permanent.

Coronavirus in the UK

As of 28 April, 157,149 cases of coronavirus had been confirmed, with the death toll at 21,092. However, 27 April saw a dramatic drop in the daily death toll, with 360 fatalities confirmed, the lowest recorded in the last four weeks.

Latest coronavirus updates, visa and immigration restrictions

For the latest updates on the coronavirus, plus details of visa and immigration restrictions worldwide, check Workpermit.com’s news feed to stay informed.

To apply for a UK visa extension amid the coronavirus pandemic, see this recent Workpermit.com news report.

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