Chancellor’s update on the Coronavirus Business Interruption Loan Scheme

28 Apr Chancellor’s update on the Coronavirus Business Interruption Loan Scheme

Following on from Tom Wilkinson’s previous posts, he has shared his takeaway from the Chancellor’s announcement yesterday afternoon on the Coronavirus Business Interruption Loan Scheme.

New Micro-Loan Scheme:

• The Micro-Loan scheme announced offers support for small businesses with a Coronavirus Business Interruption Loan Scheme that is a backed loan for up to 25% of their turnover to a maximum of £50,000
• The loans will be 100% backed by the government and they will also cover interest costs for the first 12 months, so no Personal Guarantees are required
• The Chancellor has advised that the process will be much quicker with businesses required to fill in a simple and quick standard form
• The scheme will be available from 9am on Monday 4^th May 2020.

Other updates:

• Per lending portfolio cap is removed so all the government guarantees will be a simple 80% for all Coronavirus Business Interruption Loan Scheme applications outside of the Micro-Loan scheme
• Four new lenders have become accredited this week taking the total number of Coronavirus Business Interruption Loan Scheme backed lenders to 52 – providing more options for businesses that have been affected
• Non-Coronavirus Business Interruption Loan Scheme backed lenders are providing enhanced products to help with the cashflow of those which don’t qualify for the scheme, enabling other options for them to apply for.

If you or any other business that you know of wishes to talk through these details or understand what cashflow support is available, then contact the Beta Commercial Finance team on 01538 702565 or [email protected]