• This has been running since 23rd March 2020.
• It enables businesses to apply for loans of up to £5,000,000.
• Loans would be interest and fee free for the first 12 months.
• Loans or financial products can have a period of up to 6 years.
• The Government is backing 80% of these.
• Eligibility requires that you are able to demonstrate that your business is viable.
• Applications are made either through your current bank or an alternative lender.
This scheme has evolved over time, with banks initially proving uncooperative given the possible risk to the lender, hence the Government now stepping in to give their support.
This scheme is primarily for businesses looking to borrow in excess of £50,000, so if a smaller loan would be more appropriate the Bounce Back Scheme may be more suitable.
TIP – It is important that statutory accounts are up-to-date, and it is likely that some form of management accounts will also be required to provide the lender with the best review of the business.
Please contact us if you would be interested in applying for this scheme and need assistance with statutory accounts or management information.
USEFUL LINK
HMRC:
https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme
