The loan can be used to for operating expenses while the business deals with the disruption of COVID-19. Only 5% of the loan can be used for capital expenditure.
The loan cannot be used to pay dividends or for on-lending outside borrower’s guaranteeing group.
The requirement for customers to draw on committed debt facilities has been removed from 1 May 2020, but generally, the existing facility limits will remain in place
Loan can only be used to refinance existing debt if it is a loan advanced on or after 16 March 2020 that meets other criteria (including the other criteria for Scheme loans).