Coronavirus Business Interruption Loan Scheme
What is the Coronavirus Business Interruption Loan Scheme?
The Coronavirus Business Interruption Loan Scheme will help to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance. The scheme is provided by the British Business Bank but will be accessed by businesses via high street banks.
Small businesses will be able to access ‘business interruption’ loans or overdrafts and up to £25,000 cash grants. The Government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. Additionally, the Government will not charge businesses for this guarantee so there will be no additional costs placed on businesses or lenders. Businesses will remain responsible for repaying any facility they take out. Businesses will remain responsible for repaying any facility they take out.
How to access the Coronavirus Business Interruption Loan Scheme
Loans supported by the guarantee will be provided by commercial lenders in the usual way, and the British Business Bank will publish the list of lenders shortly.
The full details of the scheme, including eligibility criteria, will be announced in the coming days. The scheme will be up and running next week.
Please see here for more information about the scheme: https://southeastbusiness.org.uk/east-sussex/coronavirus-guidance-for-employers/
We will be providing updates on our website and social media channels as soon as we receive them.