The UK government announced a temporary Coronavirus Business Interruption Loan Scheme to be delivered by the British Business Bank. It will launch in a matter of weeks to support businesses to access bank lending and overdrafts. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs.
The scheme will support loans of up to £1.2 million in value. This new guarantee will initially support up to £1 billion of lending on top of current support offered through the British Business Bank.
This will be available to businesses in Wales via high street banks and the Development Bank of Wales.
It is intended to support the continued provision of finance to Welsh businesses during the Covid-19 outbreak. It will operate in much the same way as the current Enterprise Finance Guarantee but on more attractive terms for both businesses and lenders.
The Business Interruption loan Scheme is going to take a few weeks to set up. For further information on the scheme, businesses should monitor the British Business Bank’s website or call British Business Bank on: 0203 772 1340.
The Development Bank of Wales has loan and equity funding available immediately to Welsh businesses. The Welsh Government is working closely with the Development Bank of Wales to consider additional support to help businesses through the Covid-19 impact.
For further information please visit the Development Bank of Wales website or call 0800 587 4140.
Swansea BID will provide up to date info and guidance to you as we get it, to help guide businesses that wish to apply.Tags: Coronavirus Business Interruption Loan Scheme, Development Bank of Wales, SME