Coronavirus Business Interruption Loan Scheme
The temporary Coronavirus Business Interruption Loan Scheme supports small and medium-sized businesses with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years.
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 upfront costs and lower initial repayments.
The scheme will be delivered through commercial lenders, backed by the Government-owned British Business Bank.
The scheme will be available from week commencing 23 March 2020. Find out more information about the loan and the accredited lenders.
How to access the scheme
You are eligible for the scheme if:
- your business is UK based, with turnover of no more than £45 million per year
- your business meets the other British Business Bank eligibility criteria
The full rules of the Scheme and the list of accredited lenders is available on the British Business Bank website.
All the major banks will offer the Scheme once it has launched. There are 40 accredited providers in all.
You should talk to your bank or finance provider (not the British Business Bank) as soon as possible and discuss your business plan with them. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.
For further information on the full range of business support measures which have been made available to UK businesses, visit the Governments Coronavirus Business Support website.
Covid-19 Corporate Financing Facility
Under the new COVID-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies. All non-financial companies that meet the criteria set out on the Bank of England’s website are eligible. The scheme is now available for applications. More information is available from the Bank of England.
The scheme will operate for at least 12 months, and for as long as steps are needed to relieve cash flow pressures on firms that make a material contribution to the UK economy.