There are currently 2 Government backed loans for those who need it. It will hopefully enable businesses to continue to operate during this global pandemic. Details of these two new loan schemes are being confirmed and an information campaign launched so that businesses know how to get help.
Coronavirus Business Interruption Loan Scheme – this will provide government-backed loans and will help any viable business with a turnover of up to £45m to access government-backed finance of up to £5 million to small and medium businesses. Interest payments and any lender-levied fees for businesses will be covered by the Government for an initial period of up to twelve months. You are able to apply now. The government will provide lenders with a guarantee of 80% on each facility to give lenders further confidence in continuing to provide finance to SMEs. The scheme is available through more than 40 accredited lenders, which are listed on the British Business Bank website.
The Bank of England’s Covid Corporate Financing Facility – this will provide a quick and cost-effective way to raise working capital for those large firms who need it. By purchasing short-term corporate debt – known as commercial paper – the scheme provides a quick and cost-effective way to raise working capital for companies who are fundamentally strong but are experiencing severe disruption to cashflows, helping businesses across a range of sectors to pay wages and suppliers. The scheme is open to firms that can demonstrate that they were in sound financial health prior to the impact of Coronavirus. Companies who wish to use the scheme do not need to have issued commercial paper before.