Covid 19 Business Interruption Loan Scheme

Support & business Advice Amid the chaos of Coronavirus

Updated: 25/03/2020

As the world loses its head in blind panic and hysteria over the coronavirus pandemic. Business owners are likely to enter some of the most difficult trading conditions they’ve seen. The Covid 19 Business Loan Interruption Scheme may be the lifeline you need.

In the Budget 2020, the UK Government announced a further £330 Billion of funding delivered through its Coronavirus Business Interruption Loan Scheme via the British Business Bank. Nat West & Lloyds Bank Group have also pledged combined funding of £7 Billion. 

How Does The COVID 19 Business Loan Work?

Lending is for viable UK businesses that would be turned down for a loan or other form of debt finance, due to inadequate security.

The Government-backed guarantee is for 80% of the facility value and covers a host of funding. 

Types of Business Funding Available 

  • Overdrafts
  • Invoice finance facilities
  • Asset finance facilities
  • Term Loans

 

Key Features of The Coronavirus Business Interruption Loan Scheme

  • Lending available up to £5 million. 
  • The lender guarantees 80% of the facility. 
  • The UK Government will pay fees and interest for the first 12 months. 
  • Security at the discretion of the lender loans can be unsecured up to £250,000

eligibility Criteria for support via The COVID 19 Business Loan Interruption Scheme.

The small business must be; 

  • UK based, with turnover of no more than £41 million per annum
  • Operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support)
  • Have a borrowing proposal which, were it not for the COVID-19 pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable your business to trade out of any short-to-medium term difficulty

Facilities are to fund the future growth or expansion of a business, from £1,000 to £5 million. Finance terms are from three months up to 6 years for term loans and asset finance and up to three years for revolving facilities such as overdrafts and invoice finance.

Please note:

  • The guarantee is to the lender and not the business
  • As with any other. commercial transaction, the borrower is always 100% liable for repayment of the facility supported by The Government. 

Disclaimer: Please note that the British Business Bank has launched the scheme on the 23/03/2020, however, accredited lenders are still in the process of defining and agreeing the exact details and eligibility criteria. Therefore the above information is subject to change.  

How To Access The COVID 19 Business Loan Interruption Scheme?

Enable Finance work directly with many of the lenders accredited to deliver the COVID 19 business loans. Enable Finance will work with you and submit your application to our panel of lenders.
applying for covid 19 business loan
Your Total Time Needed: 25 minutes

Things You Need

3 Months Business Bank Statements
Your Last Set Of Filled Accounts
Details of what the funding will do for your business.
Completion of our application form
Management Accounts and a breakdown of your debtors & Creditors may be needed.

Simple Steps To Apply For A Business Loan

Discuss your funding requirements with Phillip Evans - Time taken 15 minutes
Complete our simple application form - time taken 7 minutes
Step 3 : Enable Finance build your funding proposal & submit to the lender
Working from your application form which helps us understand your specific business Enable Finance build your funding proposal and submit to the lender.

Other Useful Resources

A great resource page from the UK Government covering all the help and Coronavirus Business Support available click here

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