Coronavirus: HSBC UK extends financial support for businesses

HSBC UK is extending its package of financial support for businesses affected by the coronavirus pandemic. (Getty)

HSBC UK (HSBA.L) has announced three new measures to further its package of support for businesses dealing with the economic impact of the coronavirus pandemic.

Companies involved in the supply and manufacture of ventilators, vital for the treatment of severe cases of coronavirus, will receive preferential pricing, extended repayment terms on loans, and fast track approval times to support the unprecedented demand on UK hospitals.

HSBC UK will also get rid of the £100 fee on their Small Business Loans with immediate effect, allowing small businesses to secure extra financial support without additional costs.

The bank has launched its Coronavirus Business Interruption Loan Scheme (CBILS) for existing customers with a group turnover of up to £45m ($52m). The government guarantee will secure bank loans to viable businesses with a sound borrowing proposal but which may lack adequate security.

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Companies using CBILS will benefit from no loan arrangement fee or loan prepayment fee should they wish to repay early, an interest free period of 12 months, a repayment period of up to 6 years, and a variable interest rate with option to fix after the initial interest free period.

The scheme will soon be expanded by the launch of overdrafts and the broadening of support for sole traders and partnerships.

Amanda Murphy, head of commercial banking at 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 said they are 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.