12. Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme has been launched to support primarily small and medium-sized businesses to access bank lending and overdrafts up to £5m.
The government guarantees 80% of the loan and there won’t be any fees or interest to pay for the first 12 months.
Loan terms will be up to 6 years. No repayments will be due during the first 12 months.
Details on eligibility can be found via the British Business Bank. Finance will be provided through accredited lenders, so in the first instance, businesses should approach their own bank – ideally via their website. We advise businesses to shop around, as different lenders will offer different loan terms.
Small and medium-sized businesses seeking financial support of between £2,000 and £50,000 can apply for the Bounce Back Loan Scheme.
Larger companies can access financial support through the Coronavirus Large Business Interruption Loan Scheme.
Please be aware that these schemes are open to applications until 31 January 2021.