The Coronavirus Business Interruption Loan has been in the news for many reasons but despite that, the benefits offered and criteria to access are not always clear. We thought it would be useful to provide a summary.
There are three key criteria that your business must meet in order to access the scheme:
• UK based with turnover of no more than £45 million
• Not received £200,000 of state aid over the current and previous two fiscal years
• Operate within an eligible business sector
If you don’t meet these three points, other options may be available for you. If you need advice, please get in touch to see how we can help.
Key Points of the Scheme
• The borrower always remains 100 percent liable for the debt
• The maximum value of a loan provided under the scheme is £5m. Registered companies can borrow between £10,000 and £5m; sole traders and partnerships can borrow between £25,001 and £5m
• For term loans and asset finance facilities, the maximum finance term is 6 years
• For overdrafts and invoice finance facilities, the maximum finance term is three years
• The first 12 months are interest-free for the borrower with the government covering all interest and fees
• After 12 months, the loan moves to a variable interest rate. There will be the option to fix
• Fee-free for smaller businesses
How To Access
• Select a certified lender from the list here
• Check their website to see if the terms, conditions and available finance suit your needs
• Apply. This may take longer than expected due to high demand
• If your first application is not successful, you can re-apply using a different lender
When you apply, the lender will need to know:
• The amount you would like to borrow
• What it is intended for
• How long you will take to repay the loan
In order to process your application, make sure you can access the following documents:
• Management and Historical Accounts
• A cashflow forecast
• Your business plan
• Details of any assets
The British Business Bank also has a detailed FAQ section here.
If you have more questions about the Coronavirus Business Interruption get in touch to see how we can help on 01274 588115 or via email@example.com.