Every business wants access to finance more quickly than ever in this difficult time of COVID-19. There are various schemes offered by UK government to provide financial support to businesses that are facing issues like less revenue, disruption in their cash flow due to effect of COVID-19. Coronavirus large business interruption loan scheme is a scheme designed by UK government to give financial support to those eligible medium & large businesses that are adversely affected due to coronavirus pandemic and not able to grow further due to their problematic financial situation.
Coronavirus large business interruption loan scheme is a scheme introduced by UK government in order to provide financial support to eligible large sized businesses who are adversely affected by Coronavirus pandemic (COVID-19).
As per this scheme, qualifying medium and large sized businesses can avail the loan facility or other kind of financial support up to 25% of turnover or £200 million (whichever is lower). 80% of the finance is guaranteed by the government to the lender.
Previously, medium and large sized businesses were availing the loan or other financial support only up to £50 million which is now increased to £200 million as per the announcement made by HM treasury on 19th May 2020. The changes made to coronavirus large business interruption loan scheme are expected to go live on 26th May 2020. Hence, it is suggested that you should apply for this loan scheme on or after 26th May 2020 in order to get access to more amount of money under this scheme.
You can apply for this scheme if your business –
You need to confirm the following –
Note – In case your turnover is less than £45 million, you may be eligible for any other financial support.
Any business sector can apply for this scheme except the following
This loan scheme is available for the period ranging from 3 months to 3 years.
Under this scheme, you can apply for the following –
Businesses having annual turnover between £45 million to £250 million can get access up to £25 million facilities whereas businesses having annual turnover exceeding £250 million can get access up to 50 million facilities.
Currently, there are 12 lenders who have participated under this scheme to provide financial support to medium and large sized businesses including all the main retail banks. It’s totally the lender’s call to decide whether you will be provided loan or not. You can easily approach any of the lenders as per your choice via lender’s website. Find a lender.
You must provide the following details to your lender
As per the recent update on 19th May, businesses borrowing the amount of more than £50 million must agree to the following conditions
You need to provide the following documents to your lender in support of your application of loan payment to prove that you can afford to repay this loan back
The documents you need to provide vary depending upon the lender. Lenders will check the following information before approving the loan to your business.
In case the lender turns down your loan payment application, you can opt for any other lender under this scheme who can make right type of finance available to you as per your needs.
In case you want more information or advice on Coronavirus large business interruption loan scheme, kindly call us on 03330886686 or you can also e-mail us at enquiry@dnsaccountants.co.uk
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Any questions? Schedule a call with one of our experts.
Sumit Agarwal Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.
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