Coronavirus Business Interruption Loan Scheme – Commentary by Jenny BowdenPosted 2020 by Chris Davies
Chancellor of the Exchequer Rishi Sunak addressed the media yesterday afternoon ahead of his statement to the Commons on measures to tackle Coronavirus.
These announcements come at a time when nearly all businesses are worried about their future. One of the measures that was announced was an extension to the Coronavirus Business Interruption loans scheme
Many clients have asked me since it’s first announcement on 11th March how to apply for the new temporary Coronavirus Business Interruption Loan scheme. The loan scheme is set to be up and running week commencing Monday 23rd March. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders confidence in providing finance to SMEs. The scheme will support loans of up to £5 million in value, extended from £1.2 million when first announced just 7 days ago.
There will no interest for the first 6 months and the government will not charge businesses or banks for this guarantee.
Relationship managers at the banks will be given the details of the application process as the scheme is launched