Coronavirus Business Interruption Loan Scheme

17 March 2020

Due to businesses already feeling the impact of Covid-19 the Government has announced a temporary Coronavirus Business Interruption Loan Scheme.

Keith Morgan, Chief Executive, British Business Bank, said: “At Budget 2020, the Chancellor has announced new measures relating to the British Business Bank. Together they represent a significant package of funding that further underlines the critical role of the Bank in making finance markets work better for smaller businesses across the UK, allowing them to prosper and grow”.

Coronavirus Business Interruption Loan Scheme

This scheme will temporarily replace the existing EFG (Enterprise Finance Guarantee) scheme, making an additional £1bn available.

This scheme will be delivered by the British Business Bank, who says that it should be in place within a matter of week, enabling the support to SMEs by giving them access to bank lending and overdrafts.

The government will support lenders by guaranteeing up 80% of each loan, subject to a limit on bad loans it makes claims on.

By providing this additional funding, the government is hoping to give lender more confidence in approving credit for the UKs Small Businesses that may not have the enough turnover or equity to meet the lender’s standard criteria.

Please note that even under this scheme, the small business will be liable for 100% of the debt.

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This article has been produced by www.TheFundingStore.co.uk for general interest. No responsibility for loss occasioned to any person acting or refraining from action as a result of the information contained in this article is accepted by HPG Holdings Ltd. In all cases appropriate professional legal and financial advice should be sought before making a decision.

This article has been produced by www.TheFundingStore.co.uk for general interest. No responsibility for loss occasioned to any person acting or refraining from action as a result of the information contained in this article is accepted by HPG Holdings Ltd. In all cases appropriate professional legal and financial advice should be sought before making a decision.