Government Financial Support for SMEs
The government has released a raft of measures to support businesses and sole traders through the Covid-19 pandemic. Use the support finder to see what schemes are still available for you and your business.
Coronavirus Business Interruption Loan Scheme - (UPDATE 21/11/2020)
Application deadlines have been extended to March 31 2021 for the following loan schemes:
- Coronavirus Bounce Back Loan
- Coronavirus Business Interruption Loan
- Coronavirus Large Business Interruption Loan
- Coronavirus Future Fund
Coronavirus Business Interruption Loan Scheme
The scheme is open until 31 March 2021.
The Coronavirus Business Interruption Loan Scheme (CBILS) offers financial support to SMEs who have lost revenue due to the impact of Covid-19.
CBILS has been significantly expanded along with changes to the features and eligibility meaning even more small businesses could now access the funding.
Importantly, access to the scheme has been opened up to those smaller businesses who would have previously met the requirements for a commercial facility but would not have been eligible for CBILS. This significantly increases the number of businesses eligible for the scheme.
A financial package, designed to help early stage companies receive the investment they need to survive the coronavirus crisis, has been launched by the government.
The Future Fund will provide government loans to UK companies ranging from £125,000 to £5m, subject to equal funding from private investors.
Announced by the Chancellor and delivered in partnership with the British Business Bank, the Future Fund is now open for applications and will run until the end of April2021.
The fund, which will be available to innovative new companies which do not qualify for existing coronavirus rescue measures, will match up to £250m of private investment, with a further £750m available to add to an existing loan and grant scheme for smaller firms focusing on research and development.
Pay as you Grow
If you took out a Bounce Back Loan, Government has announced a flexible repayment system. This includes extending the length of the loan from six years to ten, cutting monthly repayments by nearly half. Interest-only period of up to six months and payment holidays will also be available to those businesses struggling.
For lenders of the CBILS, repayment terms again can be extended from six years to ten years.
Bounce Back Loan
The Bounce Back Loan Scheme helps small and medium sized businesses to borrow between £2,000 and up to 25% of their turnover with the maximum loan available being £50,000.
Government guarantees 100% of the loan with no fees or interest to pay for the first 12 months. The interest rate will then be 2.5% per year.
You cannot apply for this loan if you are already claiming under:
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Coronavirus Large Business Interruption Loan Scheme (CLBILS)
- COVID-19 Corporate Financing Facility
To help you keep your business operating, we’ve made it easy to access the correct and most up-to-date information. Below, you’ll find information on government support for businesses and individuals and practical advice to help you to manage your business through this unusual period.