Coronavirus Business Interruption Loan Scheme

The Government Has Announced Support For Businesses Through

The Coronavirus Business Interruption Loan Scheme

How Do You Help Your Clients Access This Support?

To be eligible for support via EFG, the small business must:  Have a sound borrowing proposal and robust business plan, but inadequate security to meet a lender’s normal requirements.

Use VFD Pro for FREE to help clients prepare their business plans to support borrowing proposals.

VFD Pro extracts historic data from the accounts package and pre-populates a forecast model so you and your staff can be more efficient and help more clients prepare and successfully submit borrowing proposals faster.

Register to join one of the twice weekly online workshops to help you and your team master the Forecasting Model to give UK businesses the help they so desperately need.

VFD Pro Forecast Model Workshop

The Government’s Website gives the following advice for SMEs:

Updated 19th March 2020

A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch next week to support primarily small and medium sized businesses to access bank lending and overdrafts. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value. Businesses can access the first 6 months of that finance interest free, as government will cover the first 6 months of interest payments. Further details, including on the lenders providing access to this scheme will be announced in the coming days, and the scheme will be available from early week commencing 23 March 2020.

Support for larger firms, including on how to access funding will follow in the coming days.

To help your clients prepare and be ready to apply under the terms of the Enterprise Finance Guarantee (EFG) and the related eligibility criteria, they will almost certainly need help.

The following information is published on the British Business Bank website:  https://www.british-business-bank.co.uk/ourpartners/supporting-business-...

HOW DOES A SMALL BUSINESS APPLY FOR AN EFG-SUPPORTED BORROWING FACILITY?

Any small business interested in EFG should, in the first instance, approach one of the 40+ EFG accredited lenders with their borrowing proposal.  Where the small business has a sound borrowing proposal but no, or inadequate security, the lender will consider the small business for support via EFG.

It is important to be aware that decision-making on whether a small business is eligible for EFG is fully delegated to the 40+ accredited EFG lenders. These lenders range from high-street banks, to challenger banks, to asset-based lenders, through to smaller specialist local lenders.

To be eligible for support via EFG, the small business must:  Have a sound borrowing proposal and robust business plan, but inadequate security to meet a lender’s normal requirements.