HSBC UK extends financial support for businesses dealing with COVID-19
*** Preferential financial solutions for ventilator businesses ***
*** Coronavirus Business Interruption Loan Scheme launched ***
*** £100 Small Business Loan fee waiver ***
HSBC UK will offer companies involved in the supply and manufacture of ventilators preferential pricing, extended repayment terms on loans and fast track approval times to support the unprecedented demand on UK hospitals.
In addition, HSBC UK will remove the £100 fee for Small Business Loans immediately.
The Coronavirus Business Interruption Loan Scheme (CBILS) has launched today and is available for existing customers with a group turnover of up to £45 million. The Government guarantee will secure bank loans to viable businesses with a sound borrowing proposal but which may lack adequate security.
Benefits include:
- No loan arrangement fee or loan prepayment fee, should the company wish to repay early
- An interest free period of 12 months
- No repayment of capital required during the period of 12 months from drawdown*1
- For incorporated entities: Available for sums of £10,000 to £5,000,000*2
- For sole traders and partnerships: Available for sums of £25,001 to £5,000,000*2
- The loan can be repaid over any period up to 6 years
- Variable interest rate with option to fix after the initial interest free period
HSBC UK will expand the scheme imminently by launching overdrafts and broadening its support for sole traders and partnerships.
Amanda Murphy, Head of Commercial Banking, HSBC UK said: “We are committed to supporting UK businesses through these challenging times, and will continue to launch new measures to alleviate some of the pressures that our customers are facing. Otherwise healthy businesses are suffering from disruptions to their supply chain, decreased demand for goods or services and strains on their cash flow. We want to assure our customers that we are here to support them through this unprecedented time.”
HSBC UK is working closely with the Government and UK Finance to identify emerging issues and make sure customers and businesses have the advice and support they need. For tips and advice for businesses around planning for any possible disruption, visit www.business.hsbc.com/novel-coronavirus.
The new measures build upon the package of support that HSBC UK has already announced for business customers.
Media enquiries to:
Katie Cohen +44 (0) 77 472 46445 katie.cohen@hsbc.com
Twitter: @HSBC_UK/@HSBCUKBusiness
For the latest news and updates, visit the HSBC UK newsroom: https://www.about.hsbc.co.uk/news-and-media
Note to editors
*1 Subject to status, capital repayment holiday can be extended up to 24 months during the life of the loan.
*2 All loans are subject to status. Terms and conditions apply.
The previously announced support package includes:
- £5bn to help businesses that need support
- relationship managers proactively contacting customers to see what help their businesses need
- launching a helpline to support any customer queries (08000 121 614, open 9am – 5pm Monday to Friday).
- Offering repayment holidays to free up cash within businesses
- Reviewing overdrafts or trade loans to allow stock to be held for longer
- Providing trade finance solutions to support customers with their supply chains.
Trade support:
- £3bn to importers and exporters that need additional support*
- pre-approved 60-day extensions on trade loans for customers with a sound trade loan/financing record
- a one-hour turnaround on the issuance of Shipping Guarantees, enabling customers to transfer or receive goods from their counterparty faster
- a dedicated helpline that connects directly with trade finance specialists (0800 783 1300, open 9am – 5pm Monday to Friday), in addition to the support being offered by relationship managers
HSBC UK
HSBC UK serves around 14.5 million customers across the UK, supported by 32,000 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates.
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,715bn at 31 December 2019, HSBC is one of the world’s largest banking and financial services organisations.
HSBC UK extends financial support for businesses dealing with COVID-19 (2-page PDF 224KB)