Coronavirus Business Interruption Loan Scheme

There has been considerable commentary in the media about this support initiative as business owners – struggling to cope with the reduction in their cash resources due to the COVID-19 outbreak – are finding it difficult to secure support from their bank.

Readers will be encouraged by the Chancellor’s recent comments when he confirmed that personal guarantees should not be requested for loans under £250,000.

The government’s offer to guarantee 80% of loans taken out and cover all the set-up and interest charges for the first year of the loan remains an attractive solution for businesses that need the additional liquidity.

If you are considering an application you will be required to produce certain evidence to back-up your request. This is likely to include:

  • Management accounts
  • Cash flow forecast
  • Business plan
  • Historic accounts
  • Details of assets

The above requirements will vary from lender to lender.

An alternative scheme for micro-sized businesses

Smaller businesses may decide to apply for the “Bounce-Back” Loan Scheme that is now available. Loans can be obtained between £2,000 to £50,000 but limited to 25% of turnover.

These smaller loans are 100% guaranteed by government and with no fees or interest charges payable for the first year.

Latest Blog
18
Apr

New employment protections

The following changes were enacted from 6 April 2024. These changes apply to England,...

Read More
16
Apr

Opening up small company reporting

Companies House are working on detailed changes that will require small and micro siz...

Read More
12
Apr

Boost for small businesses

In a recent press release, HMRC underlined the benefits to smaller businesses from th...

Read More
09
Apr

A new acronym

Most readers of our posts will recognise the acronym CGT or IHT -Capital Gains Tax or...

Read More