The government has announced a huge package of support for small businesses to help them through the Coronavirus (Covid-19) crisis. One of the key measures introduced is the Business Interruption Loan which will be an interest-free loan designed to help businesses with cashflow problems during this time.
We have put together a list of things to consider when applying for this Government backed loan:
- The Loan is available to businesses with a turnover of less than £45m per year.
- You can apply for the Loan through one of the accredited Lenders
- The scheme is now up and running and the interest free period is for 12 months up to a lending term of six years.
- A Lender can provide up to £5million in the form of term loads, overdrafts, invoice finance and asset finance.
- The scheme provides the Lender with a Government-backed partial guarantee whilst the borrower remains liable for 100% of the debt.
With Lenders trying to cope with the huge demand for these loans they are prioritising applications that all fully complete with information, the following list details all the information you will be required to submit when making an application:
- Up to date management accounts.
- Last 12 months VAT returns.
- Last three years’ full accounts with full P&L.
- Last 12 months business Bank accounts statements, some may also ask for personal statements.
- Aged debtor and creditor lists.
- Confirmation of any outstanding debts (provider, term and repayment).
- Statement of personal assets, liabilities, income and expenditure from all Directors.
- Home addresses of all Directors and Shareholders.
- A summary of how Coronavirus (Covid-19) has affected the business so far and how the funds will be used eg: to cover staff costs.
If you need support with your loan application, please get in touch. We can help ensure you have all the correct information to hand and update your management accounts and other financial information.