24 Mar Coronavirus Business Interruption Loan Scheme open for applications
There have been a number of clients who have asked the question as to when the business loan element of the support package is going to become available. Well, it appears to now be accessible.
We’ve not had anyone go through it yet so we cannot comment, but ultimately, it is designed to act as a backstop for those businesses where the banks would not normally offer a loan to them.
There is a good article which maps out a lot of the details around it from our Tax and HR advice partners, Croner. We’ve pulled out a few key things as follows:
- Businesses should talk to their current bank lenders about using the scheme, which is provided by the British Business Bank.
- This scheme will help any viable business with a turnover of up to £45m to access government-backed finance of up to £5m.
- Interest payments and any lender-levied fees for businesses will be covered by the government for an initial period of up to 12 months;
And the business must:
- operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support or subject to limitations);
- have to confirm that they have not received de minimis state aid beyond €200,000 equivalent over the current and previous two fiscal years [EU state aid competition rules]; and
- be unable to meet a lender’s normal lending requirements for a fully commercial loan or other facility, but would be considered viable in the longer term.
The article is found in this link: https://www.accountancydaily.co/coronavirus-business-interruption-loan-scheme-open-applications