This relatively easy application process seems to be working for a significant number of our clients. You should apply to your own bank in the first instance, but other banks are able to support if your own won’t help.
- Loans of £2,000 – £50,000 but capped at 25% of turnover (likely 2019 calendar year).
- Loan term <6yrs
- 0% Interest for first 12 months
- No payments for first 12 months
- Initial interest rate after 12 months 2.5%
- Businesses that have been negatively impacted by Covid-19
- Was not an ‘undertaking in difficulty’ on 31st December 2019
- CANNOT apply if you have already claimed under Business Interruption Loan Scheme
- Loan must be used for the benefit of the business
The process is designed for those operating a business bank account, it is possible to get the loan if you have been using a personal account, but the application process will be more stringent.
This may be a very good solution for businesses considering re-opening and how to finance that process
Please bear in mind that this is a loan and is repayable unlike the Small Business and Job Retention grants which are not. You should ensure that you are content to take on this debt and would feel comfortable making the repayments if the interest rates were to rise.