Coronavirus: Business support launched
Date published: 23 March 2020
Details of two new loan schemes are being confirmed and an information campaign launched so that businesses know how to get help
Businesses will be able to start to access government support from today (Monday 23 March) to keep operating in the face of the global economic emergency brought on by coronavirus.
Details of two new loan schemes are being confirmed and an information campaign launched so that businesses know how to get help.
More than £330 billion of loans and guarantees to help firms continue operating will be available for applications from the two schemes launching.
For small and medium sized businesses, the new Coronavirus Business Interruption Loan Scheme is now available for applications. This scheme will help any viable business with a turnover of up to £45m to access government-backed finance of up to £5 million. Interest payments and any lender-levied fees for businesses will be covered by the government for an initial period of up to twelve months.
The government will provide lenders with a guarantee of 80% on each facility to give lenders further confidence in continuing to provide finance to SMEs. The scheme is available through more than 40 accredited lenders, which are listed on the British Business Bank website.
The Bank of England’s new lending facility for larger firms – the Covid Corporate Financing Facility – will also be open for applications to participate from this morning. The scheme is open to firms that can demonstrate that they were in sound financial health prior to the impact of Coronavirus.
A government information campaign has also launched today to ensure businesses are aware of the support available to them and how to access it. In addition to a new central website, the campaign will use media channels including radio, social media and television to reach businesses eligible for help.
The Chancellor of the Exchequer, Rishi Sunak, said: “We are working round the clock to do whatever it takes to protect our people and businesses.
“That means that we are not only taking unprecedented action but doing so at unprecedented speed, because we know that businesses and their employees need help now.”
This builds on the Chancellor’s announcement on Friday (20 March) of further support for firms and employees, meaning that businesses should have the access to the funds they need during this difficult period.
Further measures will be announced to ensure larger and medium sized businesses will be able to access the credit they need.
Information on the Coronavirus Business Interruption Loan is available through the British Business Bank. Interest and fees on the loans will be paid by the government the first twelve months, making them interest free to customers. This period may be shorter for firms in the fishery, aquaculture and agriculture sectors.
These support schemes sit alongside the announcement by the Chancellor on Friday of a Coronavirus Jobs Retention Scheme under which will provide a grant to employers to keep their workers on rather than make them redundant. Salaries will be paid at 80% of their current level up to a maximum of £2,500. These grants will be available by the end of April and in the meantime £30bn of cash flow relief has been provided through the deferment of VAT bills.
The new business information campaign has gone live with updated information available here:
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