COVID-19: Loans


1. Bounce Back Loan scheme

The Bounce Back Loan scheme, launched 4 May 2020, will help small and medium-sized businesses to borrow between £2,000 and £50,000. 

The government will guarantee 100% of the loan and there will be no fees or interest to pay for the first 12 months. 

Loan terms are up to six years, no repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

2. Business Interruption Loan Scheme 

The Coronavirus Business Interruption Loan Scheme (CBILS) opened for applications on 23 March 2020 and supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.

It is delivered by the British Business Bank to allow primarily small and medium sized businesses to access bank lending and overdrafts.

3. Large Business Interruption Loan Scheme 

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) is open to businesses with a turnover of more than £45 million who will now be able to apply for up to £25 million of finance, and up to £50 million for firms with a turnover of more than £250 million.

Businesses with turnovers of more than £500 million were originally not eligible for the scheme, which is being set up to help businesses who do not qualify for the existing Coronavirus Business Interruption Loan Scheme (for small and medium sized businesses) and the Bank of England Covid Corporate Financing Facility (for investment grade companies). 

4. Coronavirus Future Fund

UK businesses driving innovation and development will be helped with a £1.25 billion government support package.

Part of this package is the Coronavirus Future Fund which provides government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match-funding from private investors.

These convertible loans may be a suitable option for businesses that rely on equity investment and are unable to access the Coronavirus Business Interruption Loan Scheme (see above).

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