Coronavirus Business Interruption Loan Scheme

Last updated Thursday 17 December – 12:19

The Coronavirus Business Interruption Loan Scheme has been created for banks to offer loans of up to £5 million to support small and medium sized businesses and will be available for application until 31 March 2021.  Businesses must be based in the UK, with turnover of no more than £45 million per year and meet the other British Business Bank eligibility criteria.

The Chancellor has extended the scheme so that all viable small businesses affected by COVID-19, and not just those unable to secure regular commercial financing, are now eligible.  The government has also stopped lenders from requesting personal guarantees for loans under £250,000 and making operational changes to speed up lending approvals. The government will continue to cover the first twelve months of interest and fees and have provided lenders with the ability to extend the term of loan from six to ten years if businesses are struggling to repay the loan.

The full rules of the Scheme and the list of accredited lenders is available on the British Business Bank website. All the major banks offer the Scheme and there are 50 accredited providers in all.

You should talk to your bank or one of the 50 accredited finance providers (not the British Business Bank) as soon as possible and discuss your business plan with them. If you have an existing loan with monthly repayments you may also want to ask for a repayment holiday to help with cash flow.

If you would like some help developing your business plan or forecast our expert Corporate Finance team can help you develop a robust application.