The Coronavirus Business Interruption Loan Scheme will be launched today to provide small and medium-sized businesses with finance to cope with the coronavirus outbreak.
The measure forms part of a package of emergency support aiming to help businesses, workforces and individuals secure the support they need.
According to the Treasury, businesses will be able to access Government-backed loans of up to £5 million from today, Monday 23 March, following the publication of details of the loan scheme, as well as a public awareness campaign.
The scheme will enable “viable businesses with a turnover of up to £45 million” to access finance. The Government will guarantee each loan up to 80 per cent of its value, while interest payments and any lender-levied fees for businesses will be “covered by the Government for an initial period of up to 12 months”.
Commenting on the scheme, Business Secretary, Alok Sharma, said: “We know that businesses are in urgent need of access to funding during these unprecedented times. The Business Interruption Scheme will make it easier for banks to lend and businesses to borrow. This will ensure that credit keeps flowing to where it is needed, when it is needed.”
Larger businesses, meanwhile, can take advantage of the Bank of England’s new lending facility, known as the Covid Corporate Financing Facility, from today.
Launching the scheme, Bank of England Governor, Andrew Bailey, said: “On Monday a new lending scheme, the Covid Corporate Financing Facility, will open to help businesses manage through this period of uncertainty. Combined with steps taken by the Government, this will help companies through this difficult time and support the needs of the people of this country.”
For help accessing emergency finance, get in touch with our expert team today.