Grants & Loans

Grants & Loans

The government has introduced a number of new loans and grants to help businesses through the Covid-19 outbreak.

Local Authority Discretionary Grant Fund

Small and micro businesses with fixed property costs that are not eligible for the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund may be eligible for the Discretionary Grants Scheme.

You’re potentially eligible if your business:

  • is based in England
  • has fewer than 50 employees
  • has fixed building costs such as rent
  • was trading on 11 March 2020
  • has been adversely impacted by the coronavirus

Local councils have discretion about how to prioritise this funding. Please check with your council for details of their scheme and learn how to apply.

Coventry City Council 

Rugby Borough Council 

Warwick District Council

Stratford on Avon District Council

North Warwickshire Borough Council

Nuneaton and Bedworth Borough Council

Coronavirus Future Fund 

On the 20th May the government introduced the Coronavirus Future Fund.  This scheme will issue convertible loans between £125,000 to £5 million to innovative companies which are facing financing difficulties due to the coronavirus outbreak.

The Future Fund provides government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.

These convertible loans may be an option for businesses that rely on equity investment and are unable to access other government business support programmes because they are either pre-revenue or pre-profit.

The scheme is open for applications until the end of September 2020.

Bounce Back Loan Scheme (BBLS)

The Bounce Back Loan Scheme is available for applications now and has been introduced to help small and micro businesses in all sectors, by providing loans from £2k up to 25% of the business’ turnover with a maximum loan of £50k.

The scheme will be delivered through British Business Bank accredited lenders and partners, and provides the lender with a government-backed, full guarantee (100%) against the outstanding facility balance, both capital and interest. The borrower always remains 100% liable for the debt.

The scheme enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% a year. The government will cover interest payable in the first year.

Borrowers will not have to begin principal repayments for the first 12 months, thereafter capital will be repaid on a straight line basis.

The length of the loan is for six years but early repayment is allowed, without early repayment fees.

No personal guarantees are allowed, and no recovery action can be taken over a principal private residence or principal private vehicle.

Find out more

Download Bounce Back Loan Scheme Factsheet

 

Coronavirus Business Interruption Loan Scheme (CBILS)

Coronavirus Business Interruption Loan Scheme supports small and medium-sized businesses with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years.

The Government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.

How it Works

British Business Bank operates CBILS via its accredited lenders. There are over 40 of these lenders currently working to provide finance. View the full list of lenders.

A lender can provide up to £5 million in the form of:

  • term loans
  • overdrafts
  • invoice finance
  • asset finance

CBILS gives the lender a government-backed guarantee for the loan repayments to encourage more lending.

The borrower remains fully liable for the debt.

Under the scheme, personal guarantees of any form will not be taken for facilities below £250,000.

For facilities above £250,000, personal guarantees may still be required, at a lender’s discretion, but:

  • recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied;
  • a Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBILS-backed facility

Eligibility Checklist

Your business must:

  • Be UK-based in its business activity
  • Have an annual turnover of no more than £45 million
  • Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
  • Self-certify that it has been adversely impacted by the coronavirus (COVID-19)
  • Not have been classed as a “business in difficulty” on 31 December 2019, if applying to borrow £30,000 or more

Lenders will need further information to confirm eligibility. All lending decisions remain fully delegated to the 40+ accredited lenders.

Businesses from any sector can apply, except the following:

  • Banks, insurers and reinsurers (but not insurance brokers)
  • Public-sector bodies
  • State-funded primary and secondary schools
The scheme is open to applications now via 40+ accredited lenders. Businesses are urged to speak with their lender directly and check full eligibility, together with details of all the lenders involved with the scheme at the British Business Bank Website.
CBILS has been extended

CBILS UPDATES SMEs Factsheet

The Coronavirus Business Interruption Loan Scheme has been expanded to benefit more smaller businesses across across the UK. • Personal guarantees cannot be taken for any facilities below £250k. • Insufficient security no longer a condition to access the scheme. • Personal guarantees may be required for facilities above £250k but capped at 20% of the outstanding balance after business asset recoveries. • Lenders to retrospectively apply changes. Click on the heading to find out more about the updates to CBILS.

Coronavirus LARGE Business Interruption Loan Scheme (CLBILS)

The Coronavirus large Business Interruption Loan Scheme facilitates access to finance for medium and larger businesses, with a turnover of over £45 million.

CLBILS is available through a range of British Business Bank accredited lenders, including Bank of Scotland, Barclays, Clydesdale Bank, Yorkshire Bank, Danske Bank, HSBC, Lloyds Bank, Natwest, Santander, RBS and Ulster Bank, with applications invited from other lenders to undergo accreditation.

Lender can provide up to £25 million to businesses with turnover from £45 million to £250 million, or up to £50 million for businesses with a turnover of £250+ million

Finance is available in the form of:

  • term loans
  • revolving credit facilities (including overdrafts)
  • invoice finance
  • asset finance

CLBILS gives the lender a government-backed partial guarantee (80%) against the outstanding balance of the facility.

The borrower remains fully liable for the debt.

Under the scheme, personal guarantees of any form will not be taken for facilities below £250,000.

For facilities above £250,000, personal guarantees may still be required, but claims cannot exceed 20% of losses after all other recoveries have been applied.

Find out more on the British Business Bank Webs

The Government has extended the maximum loan size available through the Coronavirus Large Business Interruption Loan Scheme from £50 million to £200 million.

The maximum loan size available under the scheme will be increased from £50 million to £200 million to help ensure those large firms which do not qualify for the Bank of England’s Covid Corporate Financing Facility (CCFF) have enough finance to meet cashflow needs during the outbreak.

The expanded loans, which have been introduced following discussions with lenders and business groups, will be available from 26 May.

 

Small Business Grant Fund

Under the Small Business Grant Fund (SGBF) all businesses in England in receipt of Small Business Rates Relief (SBRR) and Rural Rates Relief (RRR) in the business rates system, will be eligible for a payment of £10,000, in line with the eligibility criteria set out below.

Who is Eligible? 

Business properties included in this scheme are those which on the 11th March 2020 were eligible for relief under the Rural Rate Relief Scheme or Small Business Rate Relief Scheme (including those with a rateable value between £12,000 and £15,000, which received tapered relief). Properties that were not eligible for percentage SBRR relief are excluded, unless eligible for the Small Business Rate Multiplier. Properties occupied for personal use are excluded. This scheme is limited to 1 grant per business.

When & How? 

The local authorities and councils throughout Coventry and Warwickshire will be contacting eligible businesses to find out the information needed for companies to access the grants as soon as possible. 

Application forms, where available, and further information can be found on the local authorities websites. Businesses are being urged to complete the forms online without delay, in order for the local authorities to process grants as quickly as possible. Please use the below links to access the application for your business’ local authority.

Retail, Hospitality & Leisure Grant

Under the Retail, Hospitality & Leisure Grant (RHLG), businesses in England in receipt of the Expanded Retail Discount, with a rateable value of less than £51,000 will be eligible for the following cash grants.

  • a grant of £10,000 per property, for businesses in these sectors, with properties that have a rateable value of up to £15,000, in line with eligibility criteria.
  • a grant of £25,000 per property, for businesses in these sectors, with properties that have a rateable value of over £15,000 and less than £51,000, in line with eligibility criteria.

Exclusions

Premises excluded from receiving these grants include:

  • premises with a rateable property value of more than £51,000
  • premises occupied for personal use, including private stables and loose boxes, beach huts and moorings
  • business which, as of 11th March 2020, were in liquidation or were dissolved.
  • car parks and parking spaces

When & How?

These grants will be delivered through the local authorities as quickly as possible. There is no need to contact the local authority to make an application. The funding will be allocated to businesses with premises, who meet all the eligibility criteria, and will be paid to the ratepayer of the premises, in accordance with the billing authorities records.

Important Note: Businesses that are eligible for both the Small Business Grant Fund and the Retail, Hospitality & Leisure Grant will only be able to claim one of the grants for their business. Grants are per business, per property.

A number of grants and support packages have been launched by other organisations in order to provide assistance to businesses and employees affected by Covid-19. Find details of a number of UK wide fund schemes at charitybank.org or visit our Community & B2B Schemes page for further information.