This is a developing article that will be updated regularly. Last updated 2 November 2020, 5:30pm
On 17th March 2020, the Chancellor Rishi Sunak announced further measures to support the economy. He said COVID-19 is “a public health emergency but also an economic emergency”, “will do whatever it takes” and “will go much further in the coming days”.
A key measure included the launch of COVID-19 (Coronavirus) Business Interruption Loan Scheme.
The Chancellor confirmed between £1,000 to £5 million will be available for SMEs via the COVID-19 (Coronavirus) Business Interruption Loan Scheme from 23rd March 2020. The scheme will run up until 30 November 2020.
The loan will be interest free for the first 12 months (government will cover the first 12 months of interest payments) and can be applied for via over 50 accredited lenders, including the big four banks — Barclays, HSBC, Lloyds and RBS.
You may be eligible for a loan if your business:
- is based in the UK
- has an annual turnover of up to £45 million
You must show that your business:
- would be viable if it were not for the pandemic
- has been adversely affected by the pandemic
The scheme is open to businesses in all sectors except banks, insurers and reinsurers, public-sector bodies and state-funded primary and secondary schools.
The government guarantees to cover 80% of the loan, with the banks retaining residual 20% risk. Banks may therefore request Personal Guarantees (PGs) on this proportion.
If you are thinking of applying, it would be wise to have the following information ready:-
- Cash flow statement showing the impact of COVID-19 over the next 3-6 months,
- Latest year end accounts,
- Latest management accounts (full P&L and Balance Sheet).
HOW TO APPLY FOR THE BUSINESS INTERRUPTION LOAN SCHEME
The Business Interruption Loan Scheme is available through the British Business Bank’s 50+ accredited lenders and partners, which are listed on the British Business Bank website.
In the first instance, businesses should approach their own provider – ideally via the lender’s website or email to the Relationship Manager.
FURTHER COVID-19 INFORMATION
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