COVID-19: Loans

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1. Bounce Back Loan scheme

The Bounce Back Loan scheme, launched 4 May 2020, will help small and medium-sized businesses to borrow between £2,000 and £50,000. 

The government will guarantee 100% of the loan and there will be no fees or interest to pay for the first 12 months. 

Loan terms are up to six years, no repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

2. Business Interruption Loan Scheme 

The Coronavirus Business Interruption Loan Scheme (CBILS) opened for applications on 23 March 2020 and supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.

It is delivered by the British Business Bank to allow primarily small and medium sized businesses to access bank lending and overdrafts.

3. Large Business Interruption Loan Scheme 

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) is open to businesses with a turnover of more than £45 million who will now be able to apply for up to £25 million of finance, and up to £50 million for firms with a turnover of more than £250 million.

Businesses with turnovers of more than £500 million were originally not eligible for the scheme, which is being set up to help businesses who do not qualify for the existing Coronavirus Business Interruption Loan Scheme (for small and medium sized businesses) and the Bank of England Covid Corporate Financing Facility (for investment grade companies). 

4. Support for innovative firms

UK businesses driving innovation and development will be helped with a £1.25 billion government support package consisting of:

  • Coronavirus Future Fund

Launching 20 May 2020, the Coronavirus Future Fund will provide 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 a suitable option for businesses that rely on equity investment and are unable to access the Coronavirus Business Interruption Loan Scheme (see above).

Download Factsheet (pdf)

  • Research and development support

£750 million of targeted support for the most research and development intensive small and medium size firms will be available through Innovate UK’s grants and loan scheme

Update: £40m boost for cutting-edge start-ups announced 20 May 

Innovative businesses and start-ups are set to benefit from a £40 million government investment to drive forward new technological advances. The government announced today, 20 May, that it is doubling investment in the Fast Start Competition with an additional £20 million. 

The investment comes from a £211 million government support package to drive forward business-led innovation and is part of a wider investment package of £1.25 billion for innovative UK businesses announced on 20 April. 

The Fast Start Competition was launched in April and is being managed by Innovate UK.

5. Economic Resilience Fund loans

The Economic Resilience Fund is paused as of 27 April 2020

In its first week the second phase of the Economic Resilience Fund received almost 9,000 requests for support. Due to the scale of demand, Welsh Government increased the amount of funding for this phase to £300 million. The Fund is now paused following the very large number of applications to give Welsh Government an opportunity to consider what further support businesses, charities and social enterprises need. Updates will follow. 

The Economic Resilience Fund is a £500 million fund primarily aimed at supporting those businesses who would not qualify from previously announced support packages.

1. A £100m Development Bank of Wales fund is available for companies who are experiencing cash flow problems as a result of the pandemic and will provide loans of between £5,000 and £250,000 at favourable interest rates

Details of this part of the fund, eligibility and application process can be found on the Development Bank of Wales website.