The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years. The scheme is now open and applications are now being made.
There are 40 accredited lenders able to offer the scheme, including all the major banks.
In order to qualify for the scheme you must provide the following information to support your application:
- An explanation of how the virus has affected your business
- An explanation of what steps you have taken to try and safeguard your business (reduced hours, cost cuts, furloughed staff etc.)
- An explanation of what other forms of government help you have applied for or not been eligible to apply for
- A minimum of 12 months forecasts showing the impact the virus has and will have on your business. To help with this a P&L, balance sheet and cash flow forecast is advisable
- Recent management accounts to show how your business was trading before the virus
The loan must be fully repaid by the end of the term requested, so it is important that a realistic amount and loan term is requested.
The financial information is required in order to justify the amount of loan you are claiming for and must take into account all other measures you have taken to support the business for example VAT deferments, loan and asset finance payment holidays, rent breaks, employee retention scheme help, new shareholder capital introduced and improved terms from suppliers.
We at RPG are available to help you with your application and to help with the provision of the above information to ensure that no delay is experienced with the processing of your application. Please contact your usual contact at RPG who can assist you with your application.
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