Coronavirus Business Interruption Loan Scheme Extended
It has also been announced that the Coronavirus Business Interruption Loan Scheme has been extended and will be open until 31st January 2021.
The Coronavirus Business Interruption Scheme was created to help small and medium-sized businesses access loans and other kinds of finance up to £5 million. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
Find out if your business is eligible
You can apply for a loan if your business:
- Is based in the UK
- Has an annual turnover of up to £45 million
You will need to show that your business:
- Would be viable were it not for the pandemic
- Has been adversely impacted by the coronavirus
If you want to borrow £30,000 or more, you also need to confirm that your business wasn’t classed as a business in difficulty on 31 December 2019.
Which businesses can’t apply
Businesses from any sector can apply, except:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
How long is the Coronavirus Business Interruption Loan Scheme for?
The maximum length of the loan will depend on the type of finance you apply for, and will be:
- Up to 3 years for overdrafts and invoice finance facilities
- Up to 6 years, for loans and asset finance facilities
How to apply to the Coronavirus Business Interruption Loan Scheme
There are over 50 lenders participating in the Coronavirus Business Interruption Loan scheme including all the main retail banks. You should approach a suitable lender yourself via the lender’s website.
You’ll need to tell the lender:
- The amount you’d like to borrow
- What the money is for
- How long you’d like to pay it back
Supporting documents you will need
You’ll need to provide documents that show you can afford to repay the loan.
These may include:
- Management accounts
- Cash flow forecast
- Business plan
- Historic accounts
- Details of assets
The documents required will vary from lender to lender and depend on how much you’re asking for. If you’re asking your existing lender for a small loan, the process may be automated and not require all of the documents.
The lender will check that the loan is:
- For a suitable business purpose
- Affordable for you
- The right type of finance for your needs
The lender will decide whether to offer you a loan or another type of finance and you’ll be responsible for repaying 100% of the amount borrowed. If you want assistance finding out any of the above information, please contact our team!
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