Emergency support measures introduced by the UK government during the Covid 19 pandemic are being replaced by a £3bn-a-year loan guarantee scheme, backed by UK ministers. This new scheme will come with tighter conditions for those borrowing, unlike the easily accessible finances available during Covid – which resulted in billions of pounds lost in fraud. Businesses under the scheme will be expected to offer personal guarantees for loans administrated by the banks – meaning UK businesses will be liable for defaults on repayments ahead of triggering the government guarantee.
Under current proposals, the guarantee is likely to be set at 70% of the value of the loan and will run for at least two years. The policy builds from the existing recovery loan scheme; however, the new guarantee is unlikely to be up and running before the recovery loan programme ends in June. In contrast to the pandemic “bounce back loan” scheme, this new policy will set an annual cap of £3bn on the amount banks are able to lend through the scheme. In addition, the rates will be offered at market rates, as opposed to the fixed low-interest rates seen during the pandemic bounce-back scheme.
Lenders are expected to offer loan guarantees of up to £2m to businesses under the scheme. Normal conditions are encouraged by Treasury officials to restore the business banking market – despite fears among groups that large lenders are becoming less active in the sector.
At IntaCapital Swiss, we offer financial services that facilitate funding for businesses and projects across the United Kingdom. We have a range of facilities available for those seeking loan values between £2m – £100m.
With our expert team of financiers, we can offer new projects and businesses immediate working capital across a wide variety of industries, subject to an adequate business plan and passing our due diligence.
To apply, complete our online application form – one of our Client Relationship Managers will review and get in touch to discuss your application. To find out more about IntaCapital Swiss SA facilities, please see here.