Dains Offers Support With Coronavirus Business Interruption Loan Applications
Dains can help businesses to access bank lending and overdrafts through the new Coronavirus Business Interruption Loan scheme.
Dated: 20 March 2020 Author: Roy Farmer, Corporate Finance Partner
The British Business Bank has launched the scheme to help businesses through these unprecedented times.
Lenders will receive an 80% guarantee on each loan (subject to a per-lender cap on claims) from the Government who will not charge businesses or banks for this guarantee.
The scheme supports loans of up to £5million in value and businesses can access the first six months of that finance interest free, as the government covers these payments.
To be eligible for the loan, businesses must:
- Be UK based, with turnover of no more than £41 million per annum
- Operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support (see below)
- Be able to confirm that they have not received de minimis State aid beyond €200,000 equivalent over the current and previous two fiscal years
- Have a sound borrowing proposal, but insufficient security to meet the lender’s requirements
The Corporate Finance team at Dains can work closely with businesses who may be eligible for this cash boost.
Roy Farmer, Corporate Finance Partner at Dains, said: “Businesses are going to need extra financial support to help them through the months ahead.
“The Coronavirus Business Interruption Loan Scheme could provide a significant short-term boost to many businesses during this period.
“Our Corporate Finance team have huge expertise and a proven track record in helping businesses to raise finances, maximise their potential and deliver when it matters.
“In what are worrying times, we can work very closely with businesses to check their eligibility for the loan, help them to apply and make it happen to safeguard their immediate future.”
To find out more about how Dains can support your business with an application for a Coronavirus Business Interruption Loan, please call 0845 5558844.