The scheme helps medium and large sized businesses to access loans and other kinds of finance up to £200 million.
The government guarantees 80% of the finance to the lender.
The scheme is open to applications until 31 March 2021.
If you’re a smaller business, you may be entitled to other government support.
Eligibility
You can apply for a loan if your business:
- is based in the UK
- has an annual turnover of over £45 million
- has not received support under the Bank of England’s COVID-19 Corporate Financing Facility (CCFF)
You need to show that:
- your business would be viable were it not for the pandemic
- your business has been affected by coronavirus
- the loan will enable you to trade out of any short-term to medium-term difficulty resulting from coronavirus
If you’re borrowing more than £50 million you must agree to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan. Check the eligibility requirements.
Who cannot apply
Businesses from any sector can apply, except:
- banks, insurers and reinsurers (but not insurance brokers)
- building societies
- public-sector bodies
- state-funded primary and secondary schools
What you can get
You can apply for:
- loans
- revolving credit facilities (including overdrafts)
- invoice finance
- asset finance
A lender can provide up to 25% of your annual turnover. The maximum amount you can borrow is £200 million.
How long the loan is for
Finance is available from 3 months to 3 years.
How to apply
There are 27 lenders taking part in the scheme including all the main retail banks. You should approach a suitable lender yourself via the lender’s website.
You’ll need to tell the lender:
- the amount you’d like to borrow
- what the money is for
- how long you’d like to pay it back
Supporting documents
You’ll need to provide documents that show you can afford to repay the loan.
These may include:
- management accounts
- cash flow forecast
- business plan
- historic accounts
- details of assets
The documents you need will depend on the lender. A loan could still be an option even if you do not have everything listed here.
The lender will check that the loan is:
- for a suitable business purpose
- affordable for you
- the right type of finance for your needs
The lender will decide whether to offer you a loan or another type of finance. Your business will be responsible for repaying 100% of the amount you borrow.