Coronavirus Business Interruption Loan Scheme - SMEs (turnover no more than £45 million per year)
The scheme will support SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years. A Business Interruption Payment can be made to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.
The government 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.
The scheme is now open for applications. All major banks are offering this scheme and applications should be made directly to these banks as soon as possible.