Business Loan Schemes
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Business Loan Schemes
The Chancellor extended the government’s three Coronavirus business interruption loan schemes and the Future Fund, as part of his Winter Jobs Package announcement. The extension aligns all the end dates to the end of November, ensuring that there is further support in place for those who may need it.
Business Interruption Loan Scheme
The CBILS gives businesses access to bank lending, overdrafts and other finance solutions to help them through the current crisis.
Updates: The maximum term for these loans have been extended from six years to 10 years, meaning those businesses that need to free up cash flow can extend their loan terms to drastically reduce their monthly payments.
Previous closing date: September 30
New closing date: November 30
Large Business Interruption Loan Scheme
CLBILS is a demand-led scheme targeted at businesses with a larger turnover. Firms with a turnover of more than £45m can apply for up to £25m of finance, while firms with a turnover of more than £250m, including those that exceed £500m, can apply for up to £50m.
Larger firms who do not qualify for the existing Business Interruption Loan Scheme – for small and medium sized businesses – and the Bank of England Corporate Financing Facility – for investment grade companies, can apply for this.
Previous closing date: October 20
New closing date: November 30
Bounce Back Loan
The Bounce Back Loan Scheme is designed to enable small and medium-sized businesses to access finance more quickly during the pandemic. Businesses can apply for a minimum of £2,000 up to a maximum of £50,000, or 25% of business turnover, and the Government will pay the interest for the first 12 months, with 100% backing.
Updates: The ‘Pay as You Grow’ scheme means that, like the CBILS, companies will now also be allowed to pay the loan back over 10 years instead of six, nearly halving the average monthly repayment.
Previous closing date: November 4
New closing date: November 30
Future Fund
The Future Fund issues convertible loans to innovative UK companies with good potential, that typically rely on equity investment and are currently affected by Covid-19. The scheme provides UK-based early stage companies with convertible loans between £125 000 and £5 million, while the Future Fund will match up to 100% of the amount provided by investor(s).
Previous closing date: September 30
New closing date: November 30
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