COVID_ 19_ –_ NEW_ SMALL_ BUSINESS_ MICRO_ LOAN_ SCHEME
The Government announced yesterday the launch of a new Loan scheme for small businesses.
The key details of the scheme are:
- Businesses will be able to access loans worth up to 25% of turnover, with a maximum payment of £50,000, minimum loan £2,000
- The Government will pay the interest for the first 12 months
- Loan repayments will not be required for the first 12 months
- Loans are backed by a 100% Government guarantee
- There will be no forward-looking eligibility requirements
- The Chancellor has signalled that funds should be available within 24 hours of approval
The scheme has been designed to ensure that small firms that need vital cash injections to keep operating can get finance in a matter of days.
The scheme will be open for applications from 9am next Monday (4th May 2020). The loans can be accessed via the Government’s existing network of accredited lenders. The application requires the completion of a standardised two page form.
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS), although any such loan can be transferred to this new scheme up to the 4th November 2020.
There are no further details available at present however we will update you once these become available.
Taking on additional debt may not be suitable for all businesses. If you have any queries or require further advice and / or assistance with the loan application please contact your Engagement Partner.