Business Interruption Loan Scheme
From this week, UK businesses with a turnover of less than £45 million will be able to access a Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank.
The government will provide lenders with an 80% guarantee on each loan and cover the first 12 months interest payments.
In addition to loans, the scheme can also provide overdrafts, invoice finance and asset finance facilities.
To access the scheme, businesses must not be able to meet a lender’s normal lending requirements but be considered viable in the longer term.
There are some business sectors which cannot access the scheme, such as finance, insurance and primary and secondary education, and there are limits as to how much can be borrowed by farming businesses.
Access to the scheme will be through your bank or other finance provider. There is a list of accredited lenders and other information on the Business Bank website here.
Financing facility
The Bank of England will buy short term debt from larger companies, with all UK business being eligible as long as they can demonstrate that they were in sound financial health before the virus.
Application forms and more information are available on the Bank of England website here.
