Coronavirus Business Interruption Loan Scheme – Advice on Loan Documents
When the Coronavirus Business Interruption Loan Scheme was announced by the Government, there were over 40 accredited lenders on the panel of the British Business Bank Plc.
Two months later, we can see that more than 80 lenders are accredited to provide these loan facilities. The rules of the loan scheme have since been amended by relaxing certain requirements and more businesses (including some membership organisations) can now have access to the loans on which interest and fees for the first 12 months of term of the loan are paid by the Government.
Since the lenders started to provide these loans, we have looked at the loan documentation offered by accredited lenders and advised our clients on the terms of the loans. Some of the provisions of the banks’ standard documents may not apply to every borrower and/ or may be too onerous. The banks are very busy reviewing loan applications, producing documents and getting the money out. Therefore, they may not agree to negotiate their standard documents. Nevertheless, the borrowers will still need to take legal advice on the terms of the documents, so that they are aware of any on-going restrictions and reporting obligations.
Our team at Hamlins has the expertise and ability to provide such advice and assist with progressing and completing the loans as quickly as possible. If you have any questions on this article or anything related, please contact Aselle Djumabaeva-Wood.