Small- and medium-sized businesses will be given support to access bank lending and overdrafts through a temporary scheme during the coronavirus outbreak. Find out more in our blog.
A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch next week to support primarily small and medium sized businesses to access bank lending and overdrafts. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs.
Find out more about the scheme and how we can help you apply for a loan in our video:
The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value. Businesses can access the first six months of that finance interest free, as government will cover the first six months of interest payments.
Further details, including on the lenders providing access to this scheme will be announced in the coming days, and the scheme will be available from early week commencing 23 March 2020.
You are eligible for the scheme if:
1. Your business is UK based, with turnover of no more than £41 million per annum.
2. Your business meets the other British Business Bank eligibility criteria.
How to access the scheme
The full rules of the Scheme and the list of accredited lenders is available on https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/. All the major banks will offer the Scheme once it has launched. There are 40 accredited providers in all.
You should talk to your bank or finance provider (not the British Business Bank) as soon as possible and discuss your business plan with them. This will help your finance provider to act quickly once the Scheme has launched. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.
You can read further information on this on the UK Government website.
We’ve put together articles on a wide number of items announced as part of the Chancellor’s support package – visit our Coronavirus hub to get all the latest details.
How can we help?
While there will be plenty of disruption over the next few weeks, we’re here to help!
We can support a loan application through our online brokerage Capitalise and can work through the whole application for clients. This will then be able to be processed through the Coronavirus loan scheme where eligible.
To arrange a call and find out more, email Julie on email@example.com or complete our enquiry form.