Asked by: Lord German (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government which categories of freelance workers and sole traders will be eligible for the COVID-19 Business Interruption Loan Scheme.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
The Coronavirus Business Interruption Loan Scheme is available to self-employed individuals with an eligible business entity. The scheme is open to sole traders, freelancers, body corporates, limited partnerships, limited liability partnerships or any other legal entity carrying out a business activity in the United Kingdom, with a turnover of less than £45m, operating in most sectors. The turnover of the business must generate more than 50% of its turnover from trading activity.
Lenders, such as banks, are responsible for providing loans supported by the guarantee. The exact terms of each loan and length of application will depend on the circumstances of the borrower: lenders are fully aware of the current urgency with which some businesses need to access finance to support cash-flow during this difficult time, so we would expect them to respond appropriately to their customers’ needs.
The list of participating lenders that provide Coronavirus Interruption Business Loan Scheme facilities published on the British Business Bank website.