COVID-19 Bank Loans
Last week, out of journalistic curiosity, we attempted to apply for a Coronavirus Business Interruption Loan Scheme bank loan. We were turned down.
I’d like to say it was clear from the online application form that w ecould instead apply for a normal commercial loan. But it wasn’t. We were offered the chance to phone a permanently engaged phone number instead.
Since then the chancellor has tightened up the criteria for the Coronavirus Business Interruption Loan Scheme.
Banks are now to lend to small businesses with turnover below £45m. You can apply for a loan of up to £250,000 as long as you can show you can afford the repayments. You will of course need a cashflow and accounts and all the usual things you would expect to provide. The bank is not allowed to ask for a personal guarantee against the loan.
The government will guarantee 80% of the loan.
The government will pay arrangement charges for the loan
The government will pay the first year of interest on the loan.
There are now 40 accredited banks and financial institutions that can provide these loans. You can find a full list of them here