The government have said they will help all small businesses with giving them temporary access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years. The government will cover the first 12 months of interest payments and fees, so there will be no upfront cost and a lower initial repayment.
The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank. Please click on the link to view all of the lenders, https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/current-accredited-lenders-and-partners/.
To be eligible for the scheme your business must:
- Be UK-based in its business activity
- Have an annual turnover of no more than £45 million
- Have a borrowing proposal which the lender:
Would consider viable, were it not for the COVID-19 pandemic
Believes will enable you to trade out of any short-term to medium-term difficulty
To view the British Business Bank criteria please click on the following link, https://www.british-business-bank.co.uk/wp-content/uploads/2020/03/CBILS-SME-Eligibility-Check-FINAL.pdf
To access the scheme you must apply to one of the accredited finance providers, you can then submit your application. We would recommended contacting your bank and they should be able to assist with the application.