Government Support for your Business
Updated 12th May 2020
This scheme has been set up to support business that cannot maintain normal operations due to Covid-19
What do you need to know…
There are two schemes – one for SME’s and one for Large Businesses
- Borrow up to £250,000 no personal guarantee required
- Government will guarantee 80% loan for the lender
- You are still liable for 100% of the loan for the business
- Funding available up to £5m
- Terms of up to 6 years
- No up-front costs and low repayments in year 1
- Low interest rates
- Key business information will be required upon application
- Must be based in the UK
- Annual Turnover up to £45,000
- Need to show business would be viable if not for Coronavirus pandemic, and
- Show the business has been adversely affected
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 loan you request is suitable for your business, and
- You believe you can afford the repayments
You will also need to be able to answer the following:
When the pandemic is over…
- How long will it take for your business to recover?
- What challenges do you expect to see, i.e. loss of orders, availability of staff?
- What changes is the business making in short and longer term to help improve business performance?
- What was your annual sales turnover for 2019?
- What was your annual wage bill for 2019?
- How many employees do you currently have?
- What other costs do you have to run your business?
- Provide a list of any other loans/financial commitments you may have
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!