Coronavirus Business Interruption Loan Scheme
The government will launch a new, temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, to support businesses with easier access to bank lending and overdrafts. The government will pay the first 12 months of interest and will provide lenders with a guarantee of 80% on each loan (subject to a per lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value. This new guarantee will initially support up to £1 billion of lending on top of current support offered through the British Business Bank.
Furthermore large businesses will also be supported through this time by the Bank of England, with the total loan package expected to be up to £330bn.
More info can be found here: COVID-19: Coronavirus Business Interruption Loan Scheme