Scheme details
The Chancellor announced a new loan guarantee scheme. Further details will be announced in the coming days, but what we know are;
Businesses can apply for a loan between £2,000 and £50,000 limited to 25% of turnover
The government pays the interest for the first 12 months
The government guarantees 100% of the loan
Scheme opens 9am on Monday 4 May 2020
There will be a two page standard application form
Most loans will be paid within 24 hours of approval
Loan term can be up to 6 years
No repayments will be necessary during the first 12 months
Interest rate is 2.5%
Applications under £25,000 are likely to be fast tracked to payment
Other points
Eligibility is based upon being not being in difficulty on 31 December 2019
If you already have a CBILS loan you can transfer it to this new scheme before 4 November 2020
Your business must be negatively affected by coronavirus