Loan Facilities | Glasgow Chamber of Commerce

Loan Facilities

British Business Bank Business Interruption Loan Scheme [LIVE]

To access the scheme approach you bank directly as the administrator.  List of eligible banks here 

The temporary Coronavirus Business Interruption Loan Scheme will support SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.  The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments. The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank.  

Eligible for the scheme if:

  • your business is UK based, with turnover of no more than £45 million per year
  • your business meets the other British Business Bank eligibility criteria 

Security

  • If a lender can offer finance on normal commercial terms without making use of the scheme, it will do so.
  • The lender can choose to use the scheme for unsecured lending for facilities of £250,000 and under.
  • The Big Four banks have agreed that they will not take personal guarantees as security for lending below £250,000
  • For facilities above £250,000, it must establish that the borrower is unable to provide security, before it uses CBILS.
  • Primary residential property cannot be taken as security under the scheme.

 

COVID-19 Corporate Financing Facility (CCFF) 

Under the new Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies. This will support your company if it has been affected by a short-term funding squeeze and allow you to finance your short-term liabilities. It will also support corporate finance markets overall and ease the supply of credit to all firms.

Eligibility Criteria

 

Further Information and Resources

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