Business loans for COVID19 (Coronavirus)
From Friday 03 April 2020 Chancellor Rishi Sunak has extended the current Coronavirus Business Interruption Loan Scheme (CBILS) to help more small businesses access loans.
- The Scheme supports SMEs with accessing loans of up to £5 million for up to 6 years.
- The government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees so that there are no upfront costs.
- Loan scheme extended to include all small companies affected by Covid-19, and not just those unable to get commercial funding
- The government is providing lenders with a guarantee for 80% of the loan amount.
- Provided you are borrowing less than £250,000, there can be no personal guarantee on the remaining 20%
There are only 40 accredited lenders, so make sure you are applying through a legitimate channel. You can view authorised lenders/partners on the following link:
If applying, you will need to provide your lender with details of the loan you’re asking for:
- How much you need to borrow
- What the money is for
- The period of time you want the loan for
You need to provide evidence that shows you can afford the loan repayments. This will vary from lender to lender, but may include:
- 3-months’ bank statements
- Management accounts
- Cash flow forecasts
- Business plan
- Annual accounts
- Details of assets owned
If you need any help, or require additional financial reports in order to access these loans, please get in touch.