Did you know the Government is offering small businesses bounce back loans which will grant quick access to finance during COVID 19? We are seeing a lot of farming clients who have been adversely impacted by COVID19 now consider this option, whether it's to reschedule their borrowing, extend an overdraft, or start a new venture.
With the disruption to air travel (that will be with us for a long while yet), many businesses may look to take advantage of this new domestic tourism opportunity.
The Government bounce back loan, available to all UK-based small and medium-sized businesses, is a great way to start a business up again and diversify quickly. Loans up to £50,000 are available. Loans can be for up to 6 years with an interest rate of 2.5 %. The Government will guarantee 100% of the loan and will pay the interest for the first 12 months.
All major banks are offering the funds, however the deadline for an application does vary between banks so bear that in mind. It is expected that the lender will only take a matter of days to consider applications.
The application process is generally very simple and done through the lender. There is no need for a business plan. However, the money will need to be repaid eventually so a sound business plan for the farm is still recommended so you can plan out your future repayment.
To learn more and see FAQs about the scheme, take a look at the British Business Bank website. Accredited lenders are listed here.
Small business funding in Wales
For those based in Wales, the Welsh Government also offers Micro Small Business Fund (MSBF) loans for micro to small-size businesses with fewer than 50 FTE employees which is well worth taking a look at. It is supported through the Welsh Government Rural Communities Rural Development Programme 2014-2020, and funded by the European Agricultural Fund for Rural Development (EAFRD), and Welsh Government.
MSBF is an investment fund targeting eligible capital investment projects in the tourism sector in Wales and it can be used either to upgrade existing or create new high-quality products.
How ADAS can help
If you would like assistance applying for this funding, or need help putting together a farm business plan to plan out your future, please contact Cate Barrow, ADAS Director for Farm Business Management at email@example.com or call Cate on 07774 131940.