COVID-19: Government help for large, medium and small businesses

COVID-19 – More Help for Small and Medium-Sized Businesses

In a move aimed at combating fears that small and medium-sized businesses may become insolvent accessing emergency funds, the Chancellor has extended the Coronavirus Business Interruption Loan Scheme to all viable small businesses affected by COVID-19.  The new rules will prevent lenders from requesting personal guarantees for loans under £250,000.  The Government has also stated that it will make operational changes to speed up lending approvals and continue to cover the first twelve months of interest and fees.

Information on whether you are eligible to for this Scheme, and detail on how to apply can be found here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/for-businesses-and-advisors/

COVID-19 – Government Help for Larger Businesses

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) aims to give banks the confidence to lend to many more businesses that are impacted by COVID-19.  For eligible loans, the Government will provide a guarantee of 80% to banks making loans of up to £25m to businesses with an annual turnover of between £45m and £500m.

Loans backed by the Government guarantee will be offered at commercial rates of interest, but unlike the small business scheme, the Government will not cover the interest or fees.

Further details will be announced in the coming weeks, but in the meantime the headlines can be found here: https://www.gov.uk/government/news/chancellor-strengthens-support-on-offer-for-business-as-first-government-backed-loans-reach-firms-in-need

Disclaimer - All information in this post was correct at time of writing.