Grants & Loans

Coronavirus (COVID-19) support is available to employers and the self-employed, including sole traders and limited company directors. You may be eligible for loans, tax relief and cash grants and these schemes are outlined below. You can also find information about the business support available by accessing the government’s finance finder tool.

Jobs Support

The government have made available funds to protect jobs and support employment, including the Kickstart Scheme, to support recruitment of young adults, and help for businesses to bring employees back from furlough. 

Visit A Plan for Jobs 2020

Find out more about the Kickstart Scheme

ERDF Specialist Grant

This Scheme is now closed to new applications in Coventry & Warwickshire.

The government supported by the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014 to 2020 are providing grants to small and medium enterprises (SMEs) to help businesses adapt following the coronavirus pandemic, of, predominately, between £1,000 and £3,000; a maximum of £5,000 is available in exceptional circumstances. Find out more.

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.

 

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.