This new debt finance programme was announced in the Budget. It is due to be launched on 6 April 2021 and to end on 31 December 2021, subject to review. Its aim is to help businesses affected by Covid-19 and it can be used for any legitimate business purpose, where businesses can afford additional debt. Lenders will have to make credit and fraud checks and they may overlook concerns over short to medium term performance due to the pandemic. Its features will include:
- Maximum amount: Up to £10million per business. Subject to a lender’s assessment and scheme requirements, a business which has already borrowed under the CBILS, CLBILS or BBLS facilities will also be able to access this new scheme.
- Minimum amounts: £1,000 for asset finance and invoice finance and £25,001 for term loans and overdrafts.
- Business’ turnover: There will be no turnover restriction for businesses accessing this new scheme
- Products and duration: Term loans and asset finance will be available for terms of up to six years and overdrafts and invoice finance will be available for terms of up to three years.
- Interest and fees: Unlike other schemes, interest and fees will be payable from the outset by the business borrower.
The British Business Bank will be publishing details of the accredited lenders and other information on this new scheme on its website:
www.british-business-bank.co.uk.