‘Coronavirus Business Interruption Loan Scheme

A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, has been launched 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. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value for up to 6 years.

Businesses can access the first 12 months of that finance interest free, as government will cover the first 12 months of interest payments.

ELIGIBILITY

Your business is UK based, with turnover of no more than £45 million p.a.

Your business meets the other British Business Bank eligibility criteria.

HOW TO ACCESS THE SCHEME

The scheme is now open for applications. All major banks are offering this scheme.

To apply, you should talk to your bank or one of the 40 accredited finance providers (not the British Business Bank) as soon as possible, to discuss your business plan. You can find out the latest on the best ways to contact them via their websites. Please note that branches may currently be shut down to enable social distancing.

The full rules of the scheme and the list of accredited lenders are available on the British Business Bank website - www.british-business-bank.co.uk

If you have an existing loan with monthly repayments, you may want to ask for a repayment holiday to help with cash flow.

COVID-19 CORPORATE FINANCING FACILITY (LARGE FIRMS)

Under the new Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies.

This will support your company if it has been affected by a short-term funding squeeze and allow you to finance your short-term liabilities.

ELIGIBILITY

All UK businesses are eligible.

HOW TO ACCESS THE SCHEME

The scheme is now available for applications. More information is available from the Bank of England.