businessloansandguarantees

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Business Loans & Guarantees

Eligibility: All UK businesses eligible with a turnover no more than £45m and meets the Business Bank eligibilty criteria - see here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/
How to access: Speak to your bank or finance provider
Timing:
23rd March 2020

The Government will make available and unprecedented package of £350bn in guarantees to support businesses and individuals and if demand is greater, the Government will provide more. This support will occur via two schemes:

  • A lending facility with Bank of England to provide commercial paper
  • A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will enable businesses to apply for a loan of up to £5m (up from £1.2m), with the government covering up to 80% of any losses with no fees. Businesses can access the first 6 months of that finance interest free, as Government will cover the first 6 months of interest payments. This appears to be limited to businesses with a turnover of <£41m. More details can be found here but the eligibility criteria may yet change.
  • For larger businesses that raise money on the debt markets, by selling debentures and other forms of commercial paper, there is a new lending facility with the Bank of England, enabling them to continue to raise the funds they need with lending backed by the Bank of England. This loan scheme is trailed as offering unlimited financing to eligible businesses

These loans should be available from Monday 23rd March, so we should know more in the coming days.

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Business Loans & Guarantees