How to apply for the new Coronavirus Business Interruption Loan scheme to help small business survive during the COVID-19 outbreak.
How do I apply for a Coronavirus Business Interruption Loan?
The Chancellor announced a new temporary Coronavirus Business Interruption Loan scheme, as part of a package of measures to help small business.
British Business Bank ( https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/ ) will deliver the loan scheme.
The loan scheme is available from 23rd March and it is to support small and medium businesses to access bank lending and overdrafts which, in normal circumstances, they many not be able to obtain. Interest rates will be similar to current bank lending.
The government will provide lenders with a guarantee of 80% of each loan.
And the government will cover interest payments on the first twelve months (this was 6 months but was announced on 20th March that this has now changed to 12 months) of the loan, making it interest free for that period.
Is your small business eligible for a Coronavirus Business Interruption Loan?
Be UK based, with turnover of no more than £45 million per annum
Operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support or subject to limitations)
Be able to confirm that they have not received de minimis State aid beyond €200,000 equivalent over the current and previous two fiscal years
Be unable to meet a lender’s normal lending requirements for a fully commercial loan or other facility, but would be considered viable in the longer-term
Any decision you make on lending needs to be done with the longer term in mind, as well as getting through Coronavirus in the shorter term. Decisions on leading should be made strategically.
UPDATE 23rd March 2020