The government's Coronavirus Business Interruption Loan Scheme went live for applications from today (23 March).
In the Budget, the Chancellor announced the implementation of the scheme, which will support the continued provision of finance to UK small and medium-sized (SME) businesses during the COVID-19 outbreak.
Delivered by the British Business Bank, the scheme will temporarily replace the Bank's Enterprise Finance Guarantee scheme, with an additional £1 billion made available on top of existing support supplied via the programme.
The government has since increased the scope of the Business Interruption Loan Scheme to £5 million, with no interest due for the first twelve months.
The government will provide lenders with a guarantee of 80% on each facility to give lenders further confidence in continuing to provide finance to SMEs. The scheme is available through more than 40 accredited lenders, which are listed on the British Business Bank website.
The Covid Corporate Financing Facility, which is the Bank of England's lending facility for larger firms, also launched today.
The scheme provides a quick way to raise working capital for companies that are experiencing severe disruption to cashflows.
Commenting on the schemes, Chancellor Rishi Sunak, said: 'We are working round the clock to do whatever it takes to protect our people and businesses.
'That means that we are not only taking unprecedented action but doing so at unprecedented speed, because we know that businesses and their employees need help now.'
Further details of the Coronavirus Business Interruption Loan Scheme can be found on the British Business Bank website.
Details of the Covid Corporate Financing Facility are available on the Bank of England's website.