Government Support for your Business
Updated 17th December 2020
This scheme provides financial support to smaller businesses affected due to Covid-19
What do you need to know…
- The scheme helps SME businesses to access loans and other finance up to £5 million
- Government will guarantee 80% loan for the lender
- You are still liable for 100% of the loan for the business
- No up-front costs or repayments in the first 12 months
- The scheme is open until 31 March 2021
Eligibility…
- Must be based in the UK
- Annual Turnover up to £45 million
- Need to show business would be viable if not for Coronavirus pandemic, and
- Show the business has been adversely affected by the pandemic
How long is the loan for…
- up to 3 years for overdrafts and invoice finance facilities
- up to 6 years for loans and asset finance facilities
Tip…be prepared!!!
To guide you, we would advise you have the following information available to make it easier for lenders to approve and release funds promptly:
- Management accounts
- Annual business plan
- 3 years of historical accounts
- Details of assets you have in the business
- Really important that the loan you request is suitable for your business, and
- You believe you can afford the repayments
Remember: this is guidance and the exact information you will need will vary from lender to lender
How we can help…
If you need help pulling together your loan application, please do get in touch. We would also urge any business accessing finance during this period to plan your cashflow carefully to ensure you have funds available to make payments by the revised deadlines. We can support you with this and business planning so your business can make a strong predictable recovery.
As ever, Adams O’Rourke are here if you need any further assistance regarding Covid-19 business support. Click here to get in touch with us.
Take care everyone!
Further Info
https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme