What Is The Business Interruption Loan Scheme?
Due to the sudden outbreak of the Coronavirus, many business may find that they begin to struggle as more people begin to self isolate, due to Government recommendations. This may cause stress on business owners and their cash flow.
To help combat the strain on companies, the Government has developed a scheme, delivered by the British Business Bank, that will enable businesses to apply for a loan of up to £5 Million with the Government covering up to 80% of any losses with no fees.
Businesses can access the first 12 months of that finance interest free, as government will cover the first 12 months of interest payments.
Can I Use This Scheme?
Eligible businesses must have a turnover of no more than £45 million to apply for the loan. The amount that the loan will cover may vary depending on the business applying for it. However, the Government has yet to release more details on how this might work.
How Do I Apply?
he full rules of the Scheme and the list of accredited lenders is available on the British Business Bank website. All the major banks will offer the Scheme once it has launched. There are 40 accredited providers in all.
You should talk to your bank or finance provider (not the British Business Bank) as soon as possible and discuss your business plan with them. This will help your finance provider to act quickly once the Scheme has launched. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.
The scheme will be available from early next week commencing 23 March.
Is There Anything Else I Can Do?
All business and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s ‘Time To Pay’ service.
If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
For more details you can find the Government response page: https://www.gov.uk/government/news/coronavirus-covid-19-guidance-for-employees-employers-and-businesses
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