The Coronavirus pandemic has impacted thousands of businesses across the country. Some have been forced to close, and others have seen demand and customers sharply decrease, having a devastating effect on the organisation. The UK government have put various schemes in place to help businesses during these unprecedented times, but navigating them can be confusing.

Here is everything you need to know about the current finance options available;

 

Coronavirus Business Interruption Loan Scheme (CBILS)

CBILS can help SMEs that have lost revenue and had cashflow disrupted as a result of the outbreak. Funding is not provided by the government directly but from accredited lenders. These accredited lenders can provide funding of up to £5 million as; Overdrafts, term loans, asset finance or invoice finance.

Borrowers will be fully liable for the debt, but there is no need for guarantees for borrowing less than £250,000. For borrowing more than this, a personal guarantee might be required. Under the scheme, the government will pay the interest and fees of the loans for the first 12 months.

Who Is It Aimed At?

This scheme was created to provide financial support for smaller businesses during the Coronavirus pandemic. It is aimed at businesses with a turnover of less than £45 million.

Eligibility Criteria

Businesses can apply if they;

  • Are UK based
  • Have an annual turnover of less than £45 million
  • Would be a viable business if it wasn’t for the Coronavirus pandemic
  • Have been adversely affected by the pandemic.

Bounce Back Loan Scheme (BBLS)

BBLS offers six-year term loans ranging from £2000, up to 25% of turnover. The scheme provides a 100% guarantee to the lender, backed by the government. Under the scheme, the government will pay the interest and fees of the loans for the first 12 months. All businesses on the scheme can benefit from the same affordable interest rate of 2.5% per annum.

Who Is It Aimed At?

This scheme was designed to offer financial support to businesses that are losing revenue and could benefit from finance of £50,000 or less.

Eligibility Criteria

Businesses can apply if they;

Future Fund Scheme

The Future Fund scheme will provide convertible loans from £125,000 to £5 million for innovative companies that are impacted by Coronavirus. It has been designed in partnership with the British Business Bank.

Who Is It Aimed At?

Innovative businesses that have been unable to access CBILS and other support programmes may be able to access funding from Future Fund. It is designed to help organisations that are pre-revenue or pre-profit and depend on equity investment.

Eligibility Criteria

Business are eligible if;

  • They are UK based
  • They can attract the equivalent funding from private investors and institutions
  • They have previously raised £250,000 or more in equity in the last five years.