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?
Things You Need
Simple Steps To Apply For A Business Loan
Other Useful Resources
A great resource page from the UK Government covering all the help and Coronavirus Business Support available click here
