There are a number of financing options available to businesses who have been negatively impacted by the coronavirus pandemic. These include:
Future Fund
The Future Fund provides government loans ranging from £125,000 to £5 million to companies facing financial difficulties due to the COVID-19 outbreak. This is subject to at least equal match funding from private investors.
These convertible loans may potentially be an effective option for businesses that are unable to access other government support programmes because they are either pre-revenue or pre-profit and rely on equity investment.
This scheme is open for applications until 31 January 2021.
To check your eligibility and find out how to apply,
click here.
Bounce Back loan
Bounce Back loan applications have been extended to 31 January 2021.
The Bounce Back Loan Scheme (BBLS) helps small and medium sized businesses borrow between £2,000 and up to 25% their turnover with the maximum loan amount available being £50,000.
For the first 12 months there will be no fees or interest to pay but after this time period the interest rate will be 2.5% a year. The government guarantees 100% of the loan.
For more information regarding the Bounce Back Loan Scheme and how to apply,
click here.
If you need further help or advice about this or any of the measures in place to help businesses affected by the coronavirus, please contact your usual Moore adviser.