There has been quite a lot of controversy over how the banks have been administering the business interruption loans – they are protesting that they are only doing so in line with government requirements. The government has now relaxed those requirements.
The scheme has been expanded to all viable businesses not just those unable to secure normal commercial financing. The businesses’ annual turnover has to be less than £45million.
If you have already borrowed money since 23rd March 2020 Banks are being required to bring the terms of those loans in line with the Coronavirus Business Interruption Loan Scheme.
If you are borrowing less than £250,000 you cannot be required to give a personal guarantee.
If you are borrowing more than £250,000 then the bank can require a personal guarantee but it has to exclude the principal private residence and recovery under the personal guarantee is capped.
A new scheme has also been announced for businesses with turnover higher than £45million which they are aiming to launch later in April.