Knowledge Hub | Articles

02 July 2020

State support available to UK companies

For the last couple of months, B P Collins’ corporate and commercial team has been advising businesses on the funding application process for the Future Fund and other state backed schemes, which are aimed at helping UK companies struggling to survive the pandemic. Alex Zachary, B P Collins’ corporate and commercial partner, highlights the support available and how his team can help you to apply. 

Future Fund 

The government’s £250m co-investment “Future Fund,” is overseen by a state backed group, the British Business Bank. The fund offers from £125,000 up to £5 million in government loans, subject to at least equal matched funding from private investors.  The scheme is currently due to last until September 2020 and funding will be issued on a first come first served basis “to innovative companies with good potential that typically rely on equity investment and are currently affected by Covid 19.” However, the Chancellor has stated that he would be ‘more than happy’ to expand the scheme if demand exceeded the money available.  

Coronavirus Business Interruption Loan Scheme (CBILS) 

CBILS is available for small to medium-sized UK based businesses with turnover of up to £45 million per annum, that are losing revenue and experiencing cashflow pressures because of the coronavirus. CBILS will remain in place until the end of September 2020, but this may be extended by the government as it has said there is no maximum limit set for the amount of total lending supported through the scheme. 

Coronavirus Large Business Interruption Loan Scheme (CLBILS) 

CLBILS is available to mid-sized and larger UK based businesses with turnover greater than £45 million per annum and which have been struggling during the pandemic.  

Covid Corporate Financing Facility (CCFF) 

This facility is designed to sustain liquidity amongst larger firms and help their cash flows during the coronavirus disruption by taking on short-term debt in the form of commercial paper. Companies need to make a material contribution to the UK economy, be investment grade rated (or equivalent) as at 1 March 2020, not be PRA- or FCA-regulated and not be a public undertaking. 

Bounce Back Loan Scheme (BBLS)  

BBLS is available to UK based businesses requiring smaller coronavirus related debt support between £2,000 and £50,000. Aimed at small businesses such as hairdressers, coffee shops and sole traders, loans will be 100% government backed for lenders, and businesses can apply online through a quick and easy form. The government has also agreed with lenders that 2.5% interest will be charged on these loans. 

B P Collins’ corporate and commercial team has already helped clients in relation to these and other options for funding at this time. If you would like more information, or guidance, on options for sustaining and growing your business beyond Covid please contact partner Alex Zachary at alex.zachary@bpcollins.co.uk or 01753 279052 immediately, as some funding options have fund limit or time limitations. 

Alex Zachary

Alex Zachary

Tel: 01753 279022 | 07841 672810

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