These are now available for businesses to apply for. There is little information available other than that already in the public domain and detailed here:
The main points are:
- Loan may be between £2,000 and £50,000 or up to 25% of your turnover in the 2019 calendar year
- Available to most businesses and available from most high street banks
- Simple online process to apply – 7 questions to complete, including a self-declaration that the business has been impacted by CV19, and it was not in financial difficulty at 31 Dec 2019. We believe this to mean (in broad terms) the balance sheet was positive at that date
- access to funds in a matter of days
- no interest payable for the first 12 months – and then the interest rate is 2.5%
- repayment over a maximum period of 6 years
- no personal guarantees
- loan will be 100% government backed for the lender
- the borrow remains 100% liable for the debt – this is a loan, not a grant!
The scheme will be of huge help to many businesses, and gives firms access to funds that they may need to help them through the next few months.
It has however received mixed reviews. It is still a loan, and needs to be repaid in full by the business. The terms are generous, but many small businesses will not want to burden themselves with additional debt at this time and feel that once again small limited companies are missing out on help being given to other sectors of the community.