In The News
Article Date: 20 March 2020
At Budget 2020 on Wednesday 11 March, the Chancellor announced a ‘Coronavirus Business Interruption Loan Scheme’, and that it would become available ‘over the coming weeks’.
The new scheme will become available in week commencing 23 March 2020.
The scheme provides the lender with a government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.
The Government will also cover the first 6 months of interest payments, so businesses will benefit from lower initial repayments. The business remains liable for repayments of the capital. The maximum value of a facility provided under the scheme will be £5 million pounds (the original announcement suggested a maximum value of £1.2 million.)
Support is available if the business is;
Finance terms are from three months up to ten years for term loans and asset finance and up to three years for revolving facilities and invoice finance.
There are three obvious things to reflect upon other than to generally approve of the initiative.
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