Support for businesses through the Coronavirus Business Interruption Loan Scheme

DATE 26th March 2020

A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch next week to support primarily small and medium sized businesses to access bank lending and overdrafts:

  1. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs.
  2. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value.
  3. Businesses can access the first 6 months of that finance interest free, as government will cover the first 6 months of interest payments.

Further details, including on the lenders providing access to this scheme will be announced and the scheme will be available from early week commencing 23 March 2020.


Businesses that have cover for both pandemics and government-ordered closure should be covered.

As the government and insurance industry confirmed on 17 March 2020, that advice to avoid pubs, theatres etc could be sufficient to make a claim.

Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy.

Most businesses are unlikely to be covered, as standard business interruption insurance policies are dependent upon damage to property and will exclude pandemics.

For more advice contact Lisa Petherick of insurance Gold partner, Konsileo at