Following on from my update email last week, I have included below and attached further information relating to the support available through the government’s Covid Business Interruption Loan. This funding package, originally created for firms who were unable to secure regular commercial financing during the economic downturn of the virus, has been extended to all viable small and medium business who have faced financial difficulty during the COVID-19 pandemic.
The government is also stopping lenders from requesting personal guarantees for loans under £250,000 and making operational changes to speed up lending approvals.
It is claimed that Since 23 March, around 1,000 loans worth around £90m have been processed. That’s not many considering the number of businesses that has had to stop. The number is expected to increase in the coming days and weeks as banks get used to the new system.
Rates charged to firms for loans are also expected to be kept as low as possible – given that the Bank of England’s base rate is at a record low of 0.1% and that the state is guaranteeing them. However, there will not be a cap on the rates banks can charge. The issue is among those to be discussed when the chancellor holds talks with bank chief executives in due course.
Please read the FAQs (Click here to view) attached and we can help you consider and maybe apply for such loan. Please do act now. Matters are changing daily.
There is a lot of information to digest here. Our main source of information is direct from the British Business Bank and details may change on a day to day basis.
Once you’ve read the attached information, please do contact us and we will be able to discuss how we can support and help you secure some additional funding
Economic difficulties for companies may increase as lock down continues so we are urging all our clients to consider their options for their businesses and staff now.
We are here to assist you.
Take care and stay safe.