Here we summarise what support the UK’s major high street banks are offering to businesses in response to the COVID-19 crisis.
Most of the high street banks are proactively contacting business customers to assess the level of impact. If you have not yet received a call, the banks are encouraging customers to get in touch.
We recommended that you contact your bank before waiting for the finer details of how the Coronavirus Business Interruption Loan Scheme (“CBILS”) will be administered. We have launched a CBILS Support Service to help business owners who lack the resource or bandwidth to make an application themselves.
NB – The links below take you to external websites and Shaw & Co is not responsible for the content of those sites.
Barclays has an existing £14 billion fund set up in 2019 to help SMEs during “uncertain times”. As part of this fund they will seek to help SMEs impacted by COVID-19.
To see Barclays’ financial guidance and further information on CBILS applications please click here.
HSBC has allocated £5 billion to help those in need of support in advance of CBILS guidance. While limited details are available, these measures will include the provision of trade finance to help customers with their supply chain, offering repayment holidays and reviewing the terms of overdrafts and trade loans to enable stock to be held for longer periods. The support measures highlighted also extend to personal customers with a number of options suggested to alleviate private cash-flow issues.
To see HSBC’s financial guidance and support please click here.
Lloyds Bank has indicated it will allocate up to £2 billion of arrangement fee free finance to those impacted by COVID-19 and its website provides further guidance specifically on CBILS applications.
To see Lloyds’ guidance and further information on CBILS applications please click here.
To see Metro Bank’s position on CBILS please click here.
Natwest have announced a £5 billion support package for businesses suffering disruption from COVID-19 and have committed to supporting SMEs wherever possible.
To see Natwest’s financial guidance and further information on CBILS applications please click here.
Santander’s current approach to COVID-19 for SMEs is one of “flexibility”. As with other lenders part of their support measures will include capital repayment holidays, deferral of interest payments and covenant waivers.
To see Santander’s financial guidance and further information on CBILS applications please click here.