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Coronavirus Large Business Interruption Loan Scheme — UK-wide
The Coronavirus Large Business Interruption Loan Scheme will provide a government guarantee to the loans provided by banks to firms with an annual turnover of between £45m and £500m. The government guarantee will cover up to 80% of the loans.
Eligibility criteria
To be eligible, your business must:
- be UK-based in its business activity
- have an annual turnover between £45 million and £500 million
- be unable to secure regular commercial financing
- have a borrowing proposal which the lender:
- would consider viable, were it not for the COVID-19 pandemic
- believes will enable you to trade out of any short-term to medium-term difficulty
Businesses from any sector can apply, except
- banks and building societies
- insurers and reinsurers (but not insurance brokers)
- public-sector organisations, including state-funded primary and secondary schools
What it covers
The Government will provide lenders with an 80% guarantee on individual loans for businesses that would be otherwise unable to access the finance they require to run their business. The guarantee will enable banks to make loans of up to £25m to firms with an annual turnover of between £45m and £500m. Lenders will still be expected to conduct their usual credit risk checks, but this scheme allows them to specifically support business that were viable before the COVID-19 outbreak but are now facing significant cash flow difficulties that would otherwise make their business unviable in the short term. The new scheme will allow a wide range of businesses to access finance products including short-term loans, overdrafts, invoice finance and asset finance.
How to access it
The new scheme will launch later this month, and the government anticipates it will be available through a range of accredited lenders. Once the scheme has launched, businesses should apply via the lender’s website.
Duration
Will be announced later this month.
Government resource
https://www.businesssupport.gov.uk/coronavirus-large-business-interruption-loan-scheme/Disclaimer:
The information provided here was sourced from the HMRC and it will be updated periodically but we request you to check the individual sites provided about for more information. Last updated 5th April 2020.