From today, 23rd March 2020, businesses will be able to access government support to keep them operating during the COVID-19 outbreak.
Details of two new loan schemes are being confirmed and a business information campaign has launched to give businesses a better understanding of the support available.
More than £330 billion worth of loans are available to aid businesses to continue operating during the Coronavirus outbreak, with both loan schemes available to apply for from today.
The new Coronavirus Business Interruption Loan Scheme available for small and medium sized businesses is now available for applications. This will help any viable business with a turnover of up to £45 million to access government backed finance of up to £5 million. The government will also cover any interest payments or lender-levied fees for an initial period of up to 12 months.
The government will provide lenders with a guarantee of 80% on each facility to aid lenders in continuing to provide finance to SME’s. This scheme is available through more than 40 accredited lenders, listed on the British Business Bank website.
The Covid Corporate Financing Facility is now also open for bigger businesses to apply to. By purchasing short-term corporate debt, known as commercial paper, this scheme is a quick, cost-effective way of raising the working capital for bigger companies which are fundamentally strong but are experiencing severe disruption to cash flow. This scheme is available to those who can demonstrate that they were in sound financial health prior to the effects from COVID-19. Those who wish to use the scheme do not need to have issued a commercial paper previously.
There is also a government information campaign which has launched today, ensuring businesses are educated on what support is available to them and how they can access it.
Rishi Sunak, the Chancellor of the Exchequer, said:
“We are working round the clock to do whatever it takes to protect our people and businesses. That means that we are not only taking unprecedented action but doing so at unprecedented speed, because we know that businesses and their employees need help now.”
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