Coronavirus Business Interruption Loan Scheme
The temporary Coronavirus Business Interruption Loan Scheme has been set up to support SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.
The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.
The government will provide lenders with a guarantee of 80% on loans of up to £5m in value (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank for UK based businesses with a turnover of under £45m.
Am I eligible?
You are eligible for the scheme if:
- your business is UK based, with turnover of no more than £45 million per year
- 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.
Speak to us if you need guidance on how to contact them and help with your business plan.
The full rules of the scheme and the list of accredited lenders are available on the British Business Bank website.
If you have an existing loan with monthly repayments, you may want to ask for a repayment holiday to help with cash flow. Again, if you wish to chat things through let us know.
Support for larger firms through the COVID-19 Corporate Financing Facility
Under the new Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies to allow companies to finance short term liabilities.
Due to the substantial nature of this funding there are a number of criteria that is required to access these funds. Our team are happy to discuss your individual requirements in more detail and support you with accessing this facility.
Our sister company Price Pearson are keeping fully up to date with all current government and local agency business support programmes and would be happy to speak to you if you require any assistance. To speak to a member of the team call your usual IceBlue support telephone number and we will put you in touch with them.
Last updated: 30 Mar 2020 9:08 AM