The scheme is designed to support UK SMEs by giving them access to loans, overdraft, invoice financing and asset finance of up to £5 million and for up to 6 years.
To be eligible:
- Your business must be UK based in its business activity.
- Have a turnover of no more than £45 million per year.
- Have a borrowing proposal which the lender would consider viable had there not been the COVID-19 pandemic and believes that you will have the ability to trade out of any short to medium term difficulty.
The government will provide lenders with a guarantee of 80% on each loan to give lenders confidence, however it is important to understand that the borrower remains liable for the whole of the debt.
They will also make a payment to cover the first 12 months of interest payments to help with cashflow in the short term.
The scheme is now open for applications and you should talk to your existing bank or one of the 40 accredited finance providers as soon as possible. For more information, please use the link to the scheme here.
If Harvey Telford & Bates can be of any help in assisting with any applications please get in touch with us.