The Arch Company announces rent deferral plan to help worst hit businesses
The Arch Company has announced a plan to help its worst hit businesses through the Coronavirus outbreak. The plan includes:
Help accessing government support. A new Coronavirus Support Unit will help tenants access the government’s financial support announced by the Chancellor this week (more details here). Cash grants and loans have been announced but will not be available for another few days or weeks. The unit, which will be operational from next week, will help tenants access that financial support when it does.
Rent deferrals for worst hit businesses. Long-standing small businesses experiencing short-term cash flow problems, particularly those in the hospitality, leisure, retail and overseas travel sector, will be given the opportunity to defer their rental payments for at least a month, until UK government support is in place. If, in a month’s time, businesses need to defer their rent further because the government support has not yet arrived, they will be able to do so again, up to a maximum of three months.
Potential switch from quarterly to monthly billing. Businesses severely affected who currently pay quarterly will be able to switch their payments to monthly. We will keep in contact with them to ensure they are receiving the support they need to help their business through the crisis.
In addition, we will work on a case by case basis to support tenants who, even after government support, may still face extreme hardship.
Adam Dakin, Managing Director of The Arch Company, said:
“We’re very concerned about the effect of the Coronavirus outbreak on our long-standing small businesses, particularly those in the retail, hospitality, leisure and overseas travel sectors. They employ thousands of people across the country and we want to make sure that they are not forced out of business due to the huge pressure on short term cash flow.
“We welcome the government’s financial support to small businesses announced this week, but many of our tenants need help with their cash flows now. That’s why we’re looking to support small business tenants directly affected by this outbreak through rent deferrals up to three months depending on need. In addition, we will work on a case by case basis to support tenants who, even after government support, may still face extreme hardship.
“Before Coronavirus, The Arch Company represented a thriving community of successful small businesses. We want to do our best to keep that successful business community intact for when this crisis is over.”
Please access our Coronavirus Support Unit page by clicking here.