Small businesses can apply for the Coronavirus Business Interruption loan scheme which provides loans to those experiencing lost or deferred revenues, leading to disruptions to their cashflow.
Delivered by the British Business Bank, through accredited lenders and partners, the scheme supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities. The lender has a government-backed guarantee, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.
The maximum value of a facility provided under the scheme will be £5m, available on repayment terms of up to six years. Smaller businesses will benefit from no upfront costs and lower initial repayments.
To be eligible an SME must have a turnover of no more than £45m per year. If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so. In the first instance, businesses should approach their own provider – ideally via the lender’s website. They may also consider approaching other lenders if they are unable to access the finance they need.