Coronavirus Business Interruption Loan Scheme
The temporary Coronavirus Business Interruption Scheme supports Small & Medium Sized Enterprises (SMEs).
The scheme will provide government backed loans of up to £5m to SMEs.
The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees.
The government will provide lenders with a guarantee of 80% on each loan, to give lenders further confidence in continuing to provide finance to SMEs.
The borrower always remains 100% liable for the debt.
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 major banks.
To be eligible for support, the business must:
- Be UK based with a turnover of no more than £45m per annum
- Operate within an eligible industrial sector
- Confirm that they have not received de minimis state aid beyond 200,000 euros (or equivalent) over the current and previous two fiscal years and
- Be unable to meet a lender’s normal lending requirements for a fully commercial loan or other facility, but would be considered viable in the longer term.
Finance terms will be available from three months up to ten years for term loans and asset finance, and up to three years for revolving facilities and invoice finance.
The scheme goes live week commencing 23rd March 2020.