COVID-19 LOAN SCHEMES
HELP FOR COMPANIES AFFECTED BY CORONAVIRUS
For businesses funding can be sought through the Coronavirus Business Interruption Loan Scheme (CBILS) through the British Business Bank.
Key Benefits:
-The government will guarantee 80% of the loan
-Note personal guarantees are likely to be needed and bear in mind your fiduciary duties
-12 months interest free (interest met by the government)
-Funding available from 23 March 2020
The Scheme
This is a loan so does have to be repaid. But the government has agreed to back part of them. British Business Bank operates CBILS via its accredited lenders. There are over 40 of these lenders currently working to provide finance. They include:
• high-street banks
• challenger banks
• asset-based lenders
• smaller specialist local lenders
A lender can provide up to £5 million in the form of:
• term loans
• overdrafts
• invoice finance
• asset finance
More information can be found here:
Who is eligible?
Anyone can apply that has a business, is UK based, has an annual turnover of less than £45million, and has a borrowing proposal which the lender would consider viable were it not for Coronavirus, and it believes will help you continue short term.
How much will I get?
You can apply for any amount up to £5million.
FAQ’s
Q What’s the difference between this and a normal bank loan?
The scheme provides the lender with a government backed partial guarantee. The government will also make a payment to cover the first 12 months of interest payments and any charges. There are no guarantee fees for the business that applies.
Q Will the bank try to get me to take out a normal business loan?
If the lender can offer normal finance it will do so. They can choose to use the scheme for unsecured lending of £250k and under.
Q How do I apply?
Choose a lender from the list:
Apply directly with them, if one lender turns you down you can still approach others within the scheme.
