Can the Coronavirus Business Interruption Loan Scheme help you?

The temporary Coronavirus Business Interruption Loan Scheme supports small to medium-sized enterprises (SMEs) by giving access to loans, overdrafts, invoice finance and asset finance of up to £5m and for up to six years, writes Vanessa Sanders.

The Government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no up-front costs and lower initial repayments.

It will provide lenders with a guarantee of 80% on each loan – subject to pre-lender cap on claims – to give lenders further confidence in continuing to provide finance to SMEs. 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.

Eligibility

You are eligible for the scheme if your business:

How to access the scheme

All major banks are offering this scheme which is now open for applications.

To apply, contact your bank or one of the 40 accredited finance providers. You will need a business plan. 

The full rules of the scheme and the list of accredited lenders are available on the British Business Bank website.

If you have existing loans with monthly repayments you are unable to meet, please talk to your provider immediately to request a repayment holiday to help with cash flow.

Vanessa Sanders is a partner with accountancy, finance and tax advisory medical specialists, Stanbridge Associates Ltd