The previous schemes have seen almost 1.6 million approved facilities lending almost £74 billion to businesses to support them through the coronavirus pandemic.
The new scheme offers businesses of any size continued access to loans and other types of finance up to £10 million per business to help them recover and grow following the disruption of the pandemic.
The finance can be used for any legitimate business purpose including growth and investment and will be backed by an 80% guarantee from the Government to the lender to ensure they can continue to lend confidently to borrowers.
The new scheme launched on 6th April 2021 and will remain open until 31st December 2021 and loans will be available through a network of accredited lenders, which can be found here on the British Business Bank website together with details of how to apply.
In addition to loans of between £25,001 and £10 million, invoice and asset finance are available up to the same cap, but starting at £1,000.
Loan terms and asset finance will be over a maximum of six years with overdraft and invoice facilities over a maximum of three years.
Participating banks will be asked not to take personal guarantees or secure the lending on the borrowers home.
At this stage the eligibility criteria set out by the Government is straightforward and requires that the business be:
- trading in the UK
- viable would it not be for the pandemic
- impacted by the pandemic
- not subject to insolvency proceedings
Businesses that have accessed previous COVID-19 guaranteed loan schemes will still be eligible for finance under this scheme if they meet the eligibility criteria.
Certain businesses and organisations won’t be eligible including banks, building societies, insurers and reinsurers (apart from brokers), public sector bodies and state funded primary and secondary schools.
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Last updated: 7th April 2021