The application deadline for all coronavirus loan schemes ' including the future fund - has been extended to 30 November ensuring even more businesses can benefit from government-backed support. These can also be extended from 6 to 10 years. Struggling businesses can choose for interest only or up to six months suspended payments with no credit rating impact.
Bounce Back Loan Scheme (BBLS)
BBLS has provided £38 billion of finance through more than a million loans to UK-based small businesses many of which had not previously borrowed. Loans are between £2,000 and £50,000, capped at 25% of turnover, with a 100% government guarantee to the lender to provide them with the confidence they need to support the smallest businesses. The borrower does not have to make any repayments for the first twelve months, with the government covering the first twelve months' interest payments. Under the new Pay as you Grow options (see below), Bounce Back Loan borrowers will all be offered the choice of more time and greater flexibility for their repayments.
Coronavirus Business Interruption Loan Scheme (CBILS)
CBILS has provided over 66,000 loan facilities worth £15.5 billion to eligible UK-based businesses with turnover under £45 million. The scheme provides loans of up to £5 million with an 80% government guarantee to the lender, giving lenders the confidence to provide finance to SMEs. The government does not charge businesses for this guarantee and also covers the first twelve months of interest payments and fees.
Coronavirus Large Business Interruption Loan Scheme (CLBILS)
CLBILS has provided more than 566 facilities worth over £3.8 billion to eligible UK-based businesses with turnover above £45 million. The scheme provides loans of up to £200 million (to a maximum of 25% of turnover), with an 80% government guarantee to the lender, which is more generous than equivalent schemes in many other countries.
Future Fund
Our investment scheme for innovative and fast-growing UK-based businesses, has provided loans ranging from £125,000 to £5 million which are subject to at least equal matching from private investors. Over 700 convertible loans worth £720 million have been approved. Businesses that have already accessed a Future Fund convertible loan cannot apply for another one.
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