The Coronavirus Business Interruption Loan Scheme will support businesses suffering from the Covid-19 pandemic.
The measure, announced by the Chancellor Rishi Sunak in Budget 2020, aims to help businesses experiencing disruption, such as loss of revenue and extended employee absences.
Administrated by the British Business Bank (BBB), the Government will provide lenders with a guarantee of 80 per cent on each loan to give lenders “confidence” to provide finance to SMEs.
The scheme will support loans and overdrafts up to £1.2 million in value.
Smaller businesses, meanwhile, will be entitled to up to £3,000 in grant funding each to cover gaps in cash flow. The Government said the £2.2 billion fund will support the 700,000 businesses entitled to the Small Business Rate Relief (SBRR) – a business rates relief scheme for properties with a rateable value of less than £12,000.
It was also revealed in Budget 2020 that employers will be entitled to a refund of up to two weeks of Statutory Sick Pay (SSP) per employee, as well as 100 per cent business rates relief for businesses entitled to the Retail Discount.
Commenting on the measures, the Chancellor said: “The Budget announces a set of measures to provide support to businesses during this temporary period by either reducing their costs or bridging cashflow problems arising from the outbreak, and to protect people’s jobs.”
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