A new temporary Coronavirus Business Interruption Loan Scheme will launch next week to support primarily small and medium-sized (SMEs) businesses to access bank lending and overdrafts.
The government will provide a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders confidence in providing this finance to SMEs.
The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value.
Businesses can access in addition, the first 12 months of that finance interest- free, as the government will cover the first 12 months of interest payments
Further details, including details of the banks providing access to this scheme, conditions for eligibility and approval etc., will be announced in the coming days. The scheme will be available from week commencing 23 March 2020.
For further information, please access this link: