Dear visitor,
You're reading 1 of your 3 free news articles this quarter
Register with us for free to get unlimited news, dedicated newsletters, and access to 5 exclusive Premium articles designed to help you stay in the know.
Join the UK's leading credit and lending community in less than 60 seconds.
Treasury plans new business support loan scheme – with credit checks
The Treasury is planning to replace the coronavirus business support lending schemes, with a new initiative expected to start in early 2021.
Senior Journalist covering the Credit Strategy, TRI News and Reward Strategy brands.
Senior Journalist covering the Credit Strategy, TRI News and Reward Strategy brands.
Government sources have confirmed to Credit Strategy that the new scheme will enable businesses that are deemed viable but are otherwise unable to obtain finance to borrow up to £10m, with up to 80% of the loan guaranteed by the government.
It is also understood that eligibility criteria and checks on creditworthiness are expected to be more rigorous than those under the Bounce Back Loan Scheme (BBLS).
A HM Treasury spokesperson said: “As the chancellor announced at the winter economy plan, we are working on a new, successor loan scheme and will provide details in due course.”
The British Business Bank, which currently administers the BBLS, is currently in discussions concerning the new replacement scheme.
A British Business Bank spokesperson said: “We are now having discussions with the government, trade associations, lenders and other stakeholders on the future design of the new scheme, which is expected to become operational in early 2021.”
Stay up-to-date with the latest articles from the Credit Strategy team
ENJOY READING?
Member of
Get the latest industry news
Permission Statement
