One of the challenges that we at Mercia know that small businesses face, is accessing funding. And now, during COVID-19, this has just become even more stressful as hundreds of thousands of businesses are unable to access emergency funding, as banks are battling to process applications or are turning down customers – oftentimes without giving any reasons.
To recap, there are a number of different loans that are available, including our own CBILS, and it is essential that these loans are being made available quickly. Or that a response to these applications are made in a speedy manner, so that small business owners are not left wasting valuable time when they can least afford it.
The loans that are available currently include:
Coronavirus Business Interruption Loan Scheme (CBILS)
For small businesses with a turnover of less that £45m per year. These small business in the UK can borrow between £25,000 and £5m – in this instance from Mercia – with the Government guaranteeing 80% on each loan and covering the first 12 months of interest payments.
Bounce Back Loans
Small business can borrow between £2,000 and £50,000, and the good news is that these small businesses can access this cash within days. Interest free for the first 12 months, these loans can be applied for online and the process is short, fast and simple.
Other options that may help SMEs and even micro/small businesses include Swoop Funding that can help with the funds mentioned above, as well as other grants or funding solutions that small businesses may find as life-saving or a healthy boost during this pandemic, and indeed for future growth when we get back to business as usual.