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.
Part of these measures include offering 12-month repayment holidays on loans over £25,000 as well as looking at extending, increasing or granting new overdraft facilities.
We expect more guidance and measures will be introduced shortly in anticipation of the introduction of CBILS.
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 their website provides further guidance specifically on CBILS applications.
This support is targeted at existing businesses customers with a turnover less than £25m. It may also include the provision of payment holidays for those worse affected.
The types of facilities this will cover include overdraft facilities and invoice finance facilities. We have not been notified whether this package will extend to other types of finance which may be available.
To see Lloyds’ guidance and further information on CBILS applications please click here.
Metro Bank are expecting to issue guidance on Monday 23 March 2020, but as of writing there are no specific details.
To see Metro Bank’s position on CBILS please click here.
Nat West have announced a £5 billion support package for businesses suffering disruption from COVID-19 and have committed to supporting SMEs wherever possible.
This support will take the form of loan repayment holidays, interest rate reductions, temporary emergency loans with no fees attached and, interestingly, immediate access to deposit balances with no early withdrawal penalties.
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 part of their support measures Santander will consider capital repayment holidays, deferral of interest payments and covenant waivers.
New money applications will also be considered.
Santander are currently building a dedicated support website page which we will share once it’s live. In the meantime, Santander business customers can call a Relationship Manager on 0800 731 6666.
To see Santander’s financial guidance and further information on CBILS applications please click here.
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If your business has been affected by Coronavirus and you would like to receive regular updates about emergency funding options available for SMEs – including the Coronavirus Business Interruption Loan Scheme (CBILS) – please join our mailing list by completing the form below.