“The Government released guidance for lenders to accompany the launch of the Business Interruption Loan Scheme. However, there was some confusion amongst lenders at the eligibility criteria.
Therefore, the Government has updated its guidance for lenders to offer greater clarity. This updated guidance makes the Scheme more accessible for small businesses by enabling access to a Business Interruption Loan even where a small business meets the requirements for a standard commercial facility. Lenders have also been banned from requesting personal guarantees on loans under £250,000.
However, individual lenders may, of course, attach conditions to loans they offer through the Scheme, with conditions varying widely between lenders. Currently, there are over 40 accredited lenders offering the Business Interruption Loans.
Certain lenders have a minimum requirement as to the amount they are willing to lend, but the same minimum requirement is not universal and will differ between lenders.
For example, while HSBC is working to reduce the minimum amount it is willing to lend through the Scheme to £10,000, Natwest are offering Business Interruption Loans to small businesses of between £1,000 to £50,000.
The Government encourages small businesses to explore all lenders offering the Scheme and advises that, even if denied a Business Interruption Loan by one lender, businesses can still, and should, approach other lenders within the Scheme.
Additionally, as the guidance has been updated, the Government advises that those who have already applied might wish to consider re-contacting their lender if they have previously been unsuccessful in securing funding through the Scheme.
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There has, understandably, been a very high demand for these loans and lenders have struggled to keep pace with this demand. However, I am assured that lenders are hiring, or re-training, additional staff where necessary and this is improving the speed at which loans offered through the Scheme are being processed and approved.”
At the December 2019 General Election, David was re-elected as the Member of Parliament for Clwyd West, with an increased vote share of 50.7%.