THE CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME
The Coronavirus Business Interruption Loan Scheme offers loans of up to £5 million through the British Business Bank. The scheme is being offered to support primarily SMEs to access bank lending and overdrafts. The Government will provide lenders with a guarantee of 80% on each loan and will cover the first 12 months of interest on behalf of the business. The full rules of the scheme and the list of accredited lenders is available on the British Business Bank website. All the major banks will offer the Scheme once it has launched.
Tom Gooder, our head of business development and former HSBC relationship manager reports: “I’m talking to the main High Street banks on a daily basis and am requesting updates as soon as they are available. This is a very fast-moving situation with many variables from the lenders’ perspective in terms of physically delivering the funds, so I am hopeful the process has been as streamlined as possible for fast easy access and decision-making to support businesses.
“I am advised that the banks are expecting sound proposals from viable clients and that consideration has been given to all possible support available, as well as any support that the business owners/directors are providing and also what can be done to manage costs. Due to the expected volume of requests the banks are going to see, it is important clients get this right and it is positioned with the best chance of approval at the outset, as lengthy delays could occur. There are other finance providers in the market who can assist in my network and I would like to help in any way I can, so please do contact me if you need help.”
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