£4m for Kent SMEs Affected by COVID-19 Downturn

£4m for Kent SMEs Affected by COVID-19 Downturn

Kent County Council and Medway Council are providing two new loan programmes for local businesses with a track record of success but which are now facing significant difficulties as a result of the coronavirus (COVID-19) pandemic.

The schemes, which each have a budget of £2 million, offer loans to ensure future sustainability and enable a return to growth in the medium to long term, through the funding of working capital in businesses.

Capital Growth Loans will fund:

Tangible assets such as land, buildings, plant, software, machinery and equipment.

Intangible assets acquired from third parties by the transfer of technology or knowledge.

Employment costs of new staff.

Recovery Loans will fund:

Day to day running costs such as paying supplier invoices, existing staff costs in the short term.

Operational cash flow, such as purchasing new stock, paying maintenance and utility bills.

Gap funding, where commercial funding sources cannot provide the full funding requirements.

Both schemes are offering loans of between £50,000 and £100,000 at a zero rate of interest, contributing up to 100% of total eligible costs.

Eligible small and medium-sized businesses in Kent and Medway that have been trading for at least three years as of 31 December 2019 may apply. Sole traders, partnerships and limited companies that have suffered significant business disruption resulting from the COVID-19 outbreak, eg lost trade, may qualify.

The deadline for pre-applications for both loan schemes is 14 August 2020.

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