13/03/2020

Coronavirus Business Interruption Loan Scheme

A loan scheme to support businesses interrupted by the coronavirus outbreak is to be up and running in the coming weeks, the Chancellor has announced.

Detailing Budget 2020, Chancellor Rishi Sunak said the Coronavirus Business Interruption Loan Scheme will temporarily replace the Enterprise Finance Guarantee (EFG).

Available to UK firms with an annual turnover under £41 million, lenders can seek an 80 per cent guarantee on individual loans (subject to a further per lender cap on claims), with no additional costs placed on businesses.
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Loans and overdrafts of up to £1.2 million will be supported. Businesses remain responsible for repaying any facility they take out.

Unlike the existing EFG scheme which carries a 2 per cent fee for smaller businesses, there will be no fee for smaller businesses under the new scheme.

The scheme will support firms in eligible industrial sectors who meet the criteria. A small number of industrial areas cannot gain support including export-related activities, those providing finance, the formal education sector and providing insurance.

Full details are expected to be published in the coming weeks.




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