A welcomed update to Business Interruption Loans
There have been over 130,000 applications for the Government’s Business Interruption Loans scheme with just 1,000 applications approved, things had to change to ensure the Government’s package of support reaches the small businesses that need it
Two fundamental changes to the loan application process have been put in place. Firstly, small businesses who could access financial support on commercial terms were previously ineligible for a Business Interruption Loan. This has now been amended so that any viable business that can demonstrate that they have been affected by Coronavirus (Covid-19) can now be eligible for assistance. Businesses will need to self-certify the impace Coronavirus (Covid-19) has had on the business and provide a viable borrowing proposal.
Secondly, lenders will no longer require a Personal Guarantee for loans up to £250,000, those with loans over this amount will have their recoveries capped at 20% of their outstanding loan amount.
We welcome these changes from the Government to ensure Business Interruption Loans are more accessible for small businesses. One issue that has been over-looked is that the Government have not capped interest rates after the initial 12-month interest-free period.
If you have previously applied for a Business Interruption Loan it is now worth re-applying as access to the scheme has now been expanded.
If you have any questions or require further support on the Government’s Business Interruption Loans, please do get in touch. You can call us on 01794 330 025, email us at email@example.com