A new Coronavirus Business Interruption Loan Scheme launched on the23rd March. This will cover loans and overdrafts. The maximum is £1.2 million and there is no fee payable to the Government. This is borrowing that must be repaid, these are not grants.
The scheme will be delivered through commercial lenders, backed by the Government-owned British Business Bank. There are 40 accredited lenders able to offer the scheme, including all the major banks.
The Scheme will support business loans and overdrafts of up to £5 million in value by providing a guarantee to the lender. The Government will not charge businesses for this guarantee. The scheme will also cover asset finance and invoice finance.
The decision on whether to offer finance is taken by each individual lender, not by government. Businesses remain responsible for repaying any borrowing that they take out.
In order to access the scheme, businesses should contact their finance provider, not the British Business Bank.
To access the scheme, you should talk to your bank or finance provider as soon as possible and discuss your business plan with them. This will help your finance provider to act quickly once the scheme has launched. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.